Financial ratios

5. Financial ratio analysis – Interpretation (External analysis) Current Ratio The current ratio of Dutch Lady in year 2013 is 1.91 times. It means that it has RM1.91 in current asset for every RM1 in current liability. It also means that Dutch Lady has its current liability covered 1.91 times over. The current ratio of Nestle in year 2013 is 0.90 times. It means that it has RM0.90 in current asset for every RM1 in current liability. It also means that Nestle has its current liability covered…

changed majorly with the revolution of the online world. Most standard stores have switched to marketing online shopping as a bigger part of their market than previously. This has drastically changed how the finance function. The past three years of financial data for Best buy show a trend on how the online market has changed its business structure. In 2014, 2015, and 2016 respectively the total revenue has been $40,611,000, $40,339,000, and $39,529,000. The cost of revenue in the same order is…

distribution of automotive parts throughout Canada and the United States. Thus, they have a good reputation in the Aftermarket auto industry. Looking at the financial reports, Uni-Select has a high profitability and revenue as a company based on the comparisons of the EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) margin. The EPS ratios from 2015 and 2014 also provide the points of internal strengths of the company. Firstly, the EBITDA margin increased to 7.1% in 2015…

2. Pestle 3. Internal Analysis 3.1. SWOT Analysis 3.2. Industry Value Chain 3.3. Core Competence 3.4. US Market Position 3.5. UK Issuing Market Position 3.6. UK Acquiring Market Position 3.7. Commercial Payments Market Position 3.8. Barclaycard Financial Analysis 3.9. Ansoff Market Grid Analysis 4. Recommendations 4.1. Cost Leadership Strategy 4.2. New Market Development Strategy 4.3. New Product Development Strategy…

produce and sell units provided the revenue from additional unit(s) outstrip the cost of producing it or them. By evaluating the contribution margins of Atco Plc’s products A and B, their contribution margins and contribution margin ratios are positive. Contribution margin ratios aid in the determination…

Days in inventory = Inventory / (Cost of goods sold÷365 days) = $89,562 / ($466,562÷365 days) = $89,562 / 1,278.25 = 70.07 ≈ 70 days Days sales outstanding = Accounts receivable / (Annual credit sales÷365 days) = $56,753 / (727,679÷365 days) = $56,753 / 1,993.64 = 28.47 ≈ 28 days Days in payables = Accounts payable / (Cost of goods sold÷365 days) = $38,585 / ($466,562÷365 days) = $38,585 / 1,278.25 = 30.19 ≈ 30 days Cash conversion period = Days in inventory + Days sales…

Landmark Acquisition Review Acquisition of Landmark Facility Solutions offers an excellent opportunity for Broadways Industries in both strategic and financial terms. Given that USA organizations used more than $120 billion on facility management, expanding in this area offers a valuable opportunity to increase both the size of the firm and its financial performance. Acquiring Landmark Facility Solutions would help Broadways Industries to operate in multiple market segments, offer bundled…

Resources Australia Ltd.’s last financial year’s performance is obviously not profitable. This is because mining industry is gradually declining recently, thus finding investors or attract capital to this area is difficult (Dheeriya 1993, p. 115). Unlike declining trend in this field, BEST Resources Ltd.’s performance for this year was lucrative by demonstrating positive ROE, ROA, GPM, PM and Cash flows. According to Birt et el. (2014, p. 348), Profit Margin ratio (PM) illustrates what…

2.1.3 Company size Several studies have reported a negative link between firm size and short run underpricing (Megginson & Weiss, 1991, Ibbotson, Sindelar & Ritter, 1994; Carter, Dark & Singh, 1998). Younger and smaller companies are more underpriced because they are riskier (Ritter, 1984; Ritter, 1991; Megginson & Weiss, 1991). Michelsen and Klein (2011) argue that company size acts as a primary role when the firm was making decision on whether to go private or not. According to the authors,…

Between Financial Development and Economic Growth. 3.1 Introduction In most empirical studies the problem was how to measure financial intermediation and the indication of the level of financial services produced in the economy. There are various services available to the financial sector and this is the reason why it is so difficult to construct financial development indicators. The aim of this chapter is to empirically investigate the possible relationship that exists between financial…