Financial ratios

The purpose of these ratios is to measure if the company able to meet its financial obligation as they come due Coverage ratios include debt service coverage ratio, Cash Debt Coverage Ratio, and the asset coverage ratio. • Asset Coverage Ratio This ratio looks to the balance sheet assets in comparison to debt. The ratio is a company's total assets minus short-term liabilities divided by its total debt, a ratio of two or above means that the company has sufficient assets to manage its debt. •…

performing the financial ratio analysis of BMW and Suzuki is looking like the fiscal performance of Suzuki is much more stronger than BMW by two-thousand-five it had one-hundred-ten-thousand- three-hundred-thirty-five dollars to BMW’s forty-six-thousand-six-hundred-fifty-six dollars in revenue, (E*Trade, (2015). Financial Ratios for Suzuki 2005 2006 2007 2008 2009 Current P/E Ratios…

Profitability Ratios The productivity of an organisation and its ability to produce profits is measured using profitability ratios (Žager, Sačer & Dečman 2012). Two ratios which measure profitability are net profit margin and gross profit margin. Another two ratios which assess how sufficiently assets are being used are the return on total assets and asset turnover. JB Hi-Fi’s net profit margin remained stable over the 5 year period with its lowest recorded result in 2012 with 4.74%. In 2015,…

This report provides an analysis and evaluation regarding Dorsey Landscape Inc. The included information can be located in the financial statements. This report is being made to discuss the profitability advantages and disadvantages of Dorsey Landscape Inc. Dorsey Landscape Inc. is a residential lawn care service targeting both middle-class and upper- class homes to do anything from basic lawn mowing to gardening needs. There are currently two local contracts with Preston Hill B &B and Grace’s…

growth of 19% and 34% in 2002 and 2003 respectively. However, the first quarter of 2004 demonstrates slow growth to only 7%. This slowdown in growth is cause for question as to the projected continued growth of the business. Further analysis into the financial statements will reveal additional risk. Cartwright has had a steady decrease in cash, and an increase in AR and inventory which means more sales to customers but these sales are on credit. Cartwright has also increased its borrowing from…

4.4 Performance and Value Price to earnings ratio, is a ratio used to value a company, it measures the current share price relative to earnings per share and is indicator of the value of the organisation. The main objective for a company is to create wealth for its shareholders (Petty et al, 2012). REG and Japara were listed on the ASX after end of FY2014, due to this data is not available for comparison. Figure 4 shows good price earnings per share for both companies, with REG showing a greater…

The current and quick ratios both increase. | | | | | Question 26 4 out of 4 points | | | If a bank loan officer were considering a company's request for a loan, which of the following statements would you consider to be CORRECT?Answer | | | | | Selected Answer: | Other things held constant, the lower the debt ratio, the lower the interest rate the bank would charge the firm. | Correct Answer: | Other things held constant, the lower the debt ratio, the lower the…

Ratio Analysis Table 4. Industry Average Ratios Table 5. Ross Stores Ratios Tables 4 and 5 represent the industry average ratios for the past five years, and the Ross ratios for the same five years respectively. Liquidity ratios are a measure used to find a company ability to pay its short-term debt obligations. If the ratio is high, the company is successfully paying its debt in a timely matter. The tables show a decreasing trend in the industry, current ratio, quick ratio, and cash ratio…

findings start to look grim. The company lost 34% of earnings between 1999 and 2000, but manage to come out of that loss by 2001. However, even without significant loss here, the Net Income does not equally represent the strength in the company’s financial growth the way sales do. The overall production costs have increased steadily as well, but this is probably due to the large amount of inventory added between 2000 and 2001. We see the increase of inventory cost spike from an 35% up to…

comes to the industry averages for both Under Armour and Nike: the current ratio, return on assets ratio and profit margins ratio will be looked at for each company. Please note all numbers are in the millions or billions. The current industry average for Under Armour in regards to current ratio is 2.92 USD under the tab, Under Armour Balance Sheet in W2 in cell P8. The current industry average for Nike in regards to current ratio is 3.06 USD under the tab, Nike Balance Sheet in W2 in cell P8.…