Ratios

financial ratios that assist management with the operations of selling goods. These financial ratios are also useful to investors and creditors to determine the long-term security, short-term efficiency and overall profitability of a retail company. Additionally, they can help analyze how well a retail company is selling its inventory, pricing its goods and operating its business as a whole. As you can see from the spreadsheets presented there are several financial ratios interpreted. Retailers like Kroger typically focus on six of the ratios found on the spreadsheets. They are the current ratio, quick ratio, gross profit margin, inventory turnover, return on assets, and interest coverage ratio. For this…

“Ratio Analysis is the single most important technique of financial analysis in which quantities are converted into ratios for meaningful comparisons, with past ratios and ratios of other firms in the same or different industries.” Ratio analysis determines trends and exposes strengths or weaknesses of a firm. PetSmart is using their capital to generate sales at an increasing rate. They have been increasing in NWC turnover from every year and are projected to keep increasing above the industry…

Safe Staffing Ratios on a Med-Surge Unit Angela Lyons Eastern Gateway Community College Abstract Nurses have an integral and important role in the health care system. In order to retain nurses and have quality patient care, acceptable nurse to patient ratios must be obtained. Three of the many benefits of adequate nurse to patient ratios are quality patient care, retention of nurses, and patient safety. Safe Staffing Ratios on a Med-Surge Unit Nurse staffing is a complex issue with no easy…

Profitability ratios are a class of financial metrics that are used to access an organization ability to generate earnings compared to its expenses and other relevant cost that are incurred during a specific period of time. Profitability ratios are the most popular metrics used in a financial analysis. The different profit margins are used to measure a company’s profitability in various cost levels, including gross margin, operating margin, pretax margin and the net profit margin. The profit…

The Caterpillar ratio analysis will focus on receivables turnover and inventory turnover. Receivables turnover is a company 's total sales divided by receivables, while inventory turnover consists of sales divided by inventory Block, Hirt, & Danielsen, 2014, p. 63). Receivables turnover grants the ability to calculate a company’s efficiency in receiving financial backing while gathering amounts outstanding on that loan. Inventory turnover ratio is the selling and replacement, of inventory,…

Ratio analysis When evaluating the performance of ORL, financial ratio from different aspects will be considered together. 1. Profitability 1.1 ROE ROTON’s ROE has experienced fluctuation through the three financial years. The highest value represented the amount of 84.9% in 2011; on the other hand, the lowest value pointed 66.5% in the last financial year. The ROE of OROTON is sliding from 2011 to 2013. The downward trend indicates the management of ORL might not well manage the profits based…

Earning per share ratio is one of the profitability ratios computed by the net income less preferred dividends and divided the weighted average common shares outstanding. In 2015, Google’s earning per share ratio is $22.84. This indicates that if Google distributed every dollar of income to its shareholders, each shareholder would receive $22.84. In addition, Google’s earning per share ratios also increase from $20.57 in 2014 to $22.84 in 2015. These ratios in recent years are high, which means…

with strong market performances in what has been increasingly challenging conditions. They have positioned themselves well with a strong metropolitan radio group, investment focus on growth areas, with radio expected to grow 4% year on year over the coming five years Ibis World (2015).This positions them importantly with just over 60% of proportionate earnings in growth media, compared to 44% at the end of FY13. 3. Quantitative overview Financial ratios are useful tools for assessing a firm’s…

Quick Ratio measures the ability of a company to fulfill its current liabilities with its most liquid assets. Overall, a rising quick ratio indicates that the company has enough cash to pay back its current liabilities. From the calculation, a decrease of Sleep Country’s quick ratios is prevalent between the 2014 to 2015 fiscal years. In 2014, the ratio reveals that Sleep Country had approximately $1.06 in quick assets for every $1 in current liabilities. However, in 2015 the quick ratio…

Ratio analysis is the quantitative analysis of information contained in a company’s financial statement. According to NetMBA (n.d.), ratio analysis is usually based on the balance sheet, income statement and cash flow statements of the company. It is used to analyze the financial performance of a company and also to compare different companies in the same industries and also different company’s in different industries, It is usually done on line by line item. The ratios which I have used…