Financial ratios

Volkswagen and BMW increased in debt to equity ratio indicates that both company has been aggressive in financing their growth with debt, while BMW able to maintain a steady cash flow over the years, this is not the case for Volkswagen. Overall, Solvency and liquidity analysis are equally important in financial statement analysis. Volkswagen low debt to equity ratio combined with low financial leverage and its ability to meet long-term obligations indicates lower risk of insolvency. On the…

leads generated through the C6 marketing campaign, such as a banner ad or AdWords campaign. C6 will need to determine the opportunity value of each lead. C6 needs to find their average value per win and divide that value by your average lead to win ratio. Wins are considered new customers generated by the effective appeal of the campaign. Revenue/Cost per attendee These are good specifics for evaluating the effectiveness of C6 events…

Acme Products, Inc., requires a new machine to produce a part for a heat generator. Two companies have submitted bids, and you have been assigned the task of choosing one of the machines. Cash flow analysis indicates the following: Year Machine A Machine B ---- --------- --------- 0 -$1,000 -$1,000 1 0 417…

Documents J.C. Penney company’s consolidated statement of operations, income, stockholder’s equity and cash flow for each year gets audited accordance with the standard of Public Company Accounting Oversight Board. These consolidated statements present financial position of the company. Balance Sheet Consolidated balance sheet of J.C. Penney presents the assets and liabilities of the company in a single document. It’s current assets include cash in bank, cash short-term investment, and etc.…

Answer 1: a) Tax consideration: In present scenario, ICI is a subsidiary of a stable and established firm and is in a good state with sufficient revenue generation. It has current debt ratio of 40%. ICI would want to leverage the low debt ratio of Nero for further growth and expansion. This merger can also be used as a way of tax benefits for excess cash flows. Acquisition of a loss making firm can be used to save tax on the acquiring firm’s income. b) Diversification: Although diversification…

I will be conducing a leverage-debt ratio. A leverage debt ratio is used to measure the degree to which a firm relies on borrowed funds in its day to day operations. Conclusively, a firm that takes too much debt could experience problems repaying lenders or meeting their promises to shareholders. The ratio measures to what extent the company is financed by borrowed funds that must be repaid. Per the financial statement of Canadian Tire, specifically the balance sheet Canadian Tire’s total…

Question no. 1 Difference between profit and cash flow (Jordan, Dolvin & Miller, 2015) defines profit as revenue after deducting the incurred expenses which is also called net income, where revenue includes total sales and any gains and cost & expenses includes cost of goods sold, salaries, maintenance, utilities insurance, rent, interest, transportation, depreciation. And cash flow is the difference between the actual cash that is received and the actual cash being utilized in the business.…

From the ROC plot, It compares the train model vs. the valid model performance and it clearly states that train model is more efficient than valid model. Train model has more efficiency to predict that which customers would purchase the affinity card. Scorecard Points Overall N Overall % AFFINITY_CARD has an affinity card no affinity card N % N % BULK_PACK_DISKETTES NO PURCHASE 0.00 276.00 36.85 73.00 38.42 203.00 36.31 PURCHASE 24.00 473.00 63.15 117.00 61.58 356.00 63.69…

are still below the level seen before the recession. Figure 9: Choice Hotels Interest Coverage Ratios13 The revenue per available room, average daily rate and occupancy rates have increased since 2011 suggesting that they are improving their financial gain as seen in figure 10. For Choice Hotels, the average daily rate, and the occupancy rates are significant to the companies performance being 100% franchised as most revenue is derived from royalty fees that are based on the gross amount…

representative office in March 2017, are carried out responsibly and ethically whilst enhancing business value for all its shareholders. Moreover, Annual General Meetings are held yearly with all Board members and shareholders in order to review the financial year’s performance and to discuss openly about the strategy of the bank, as agreed by all related…