Financial ratios

BASF - Ratio Analysis i. Profitability Ratios To begin with, we analyzed the most fundamental category of ratios, which are the profitability ratios. The first two profitability ratios, “Return on ordinary shareholders funds/ (ROSF)”, and “Return on capital employed/ (ROCE)” are almost stable for BASF from 2012 till 2014, while in 2015 they both drastically fall for an average of 4 points, till 2016. These two ratios indicate a gradual decrease in net profits…

My team has analyzed the financial positions of American Eagle Outfitters and The Buckle Company. We have analyzed the inventory of both companies to see how profitable they may be. From our research, we present to you the following information. American Eagle evaluates its merchandise inventory at the lower of average cost or market, using retail method. Average cost includes merchandise design and sourcing costs and related expenses. American Eagle records its merchandise receipts at the time…

industrial goods and produces and sells farm and construction machinery. The three ratios that I believe are important in determining a company’s financial situation are the quick ratio, the inventory turnover ratio, and the net profit margin ratio. To find the quick ratio, we add cash, cash equivalents, short term investments and current receivables and divide them by the current liabilities. I found that the quick ratio is 1.86, we use this to find the companies liquidly position, which the…

Looking over Walmart’s financial ratios from 2013 to 2014 has not increased tremendously in certain areas. Walmart’s gross margin profit indicates that Walmart is receiving about 25% of every dollar earned for every goods sold. The company can increase their gross profit margin by increasing prices on products that competitors do not sell, pricing products at the right price, having less discounted items, bargain with manufacturers and vendors to lower prices, and by improving their inventory…

Home Depot Financial Analysis Overview This paper is the final project for Finance 300 spring semester class held at Marlboro Grad School and will provide a high level financial analysis of “The Home Depot” a home improvement specialty retailer that enjoys a dominate position in that market space. The company had 2,269 retail stores worldwide in 2014 and is the largest home improvement retailer in the world. The Home Depot’s stock is traded on the New York Stock…

more loyalty from the existing customers. Financial Analysis Analysis for Whole Foods Market is analyzed through the use of the Annual Report Form 10-K from the fiscal year ending on September 28, 2014. Several important financial ratios and percentages show trends that Whole Foods Market can use to improve future net profits for the company. Effective ratios for Whole Foods Market include liquidity ratios and profit margins used for analysis. The financial numbers are taken for the balance…

Office Depot compete against one another by selling similar products such as office and school supplies. The difference between these two companies may not be very noticeable when looking at them through a broad lens. However, after comparing the financial statements of these two companies, I found that the profitability, liquidity, and solvency of each is what distinguishes Staples from Office Depot. When comparing the profitability of these two companies at the end of the fiscal year, I…

significantly higher than the projected industry (12.90%), transportation sector (8.56%), and S&P 500 (5.55%). Although these figures are only forecasts and are far from certain, many economic factors can both positively and negatively affect their financial outlook. For example, elements such as lower fuel costs, consumer demand, and labor negotiations are leading forecasters to predict a plateau of growth from airline industry stocks (Zacks, 2015a; Carey, 2015). Favorably, the price of oil has…

This all being said, Verizon is worth the hype. All of their numbers are increasing at a steady and constant rate with no dismal future in sight. Here are a few short analyses of what financial accounts are supporting Verizon: - Profitability Ratios: This ratio varied from industry to industry. Some company that have an overall profit margin of 25% might seem relatively low. However, if we compared it to other company in the same industry with a profit margin of 16%, that 25% doesn’t seem as…

A. LIQUIDITY RATIOS 1. CURRENT RATIO The current ratio measures a company’s ability to pay its short term obligations. The current ratio of Adani Power Ltd. has increased over the past three years. The Current ratio of Adani Power is constantly below 1, meaning that the current liabilities are more than the current assets. This suggests that the company would be unable to pay off its obligations if they came due at that point. This indicates that the company is not in good financial health. 2.…