Ratios

the impact on ROE as stated above). Combined with Orica's Debt to asset ratio increasing from (XX) to (XX) in 2012, Orica is financing almost 60% of its assets through debt (increasing their total liabilities by $624m). Orica needs to review its borrowing practises and debt financing as these high ratios show that they are relying more on debt than in the past (which results in increased interest expense). These high ratios also imply that Orica is becoming more capital intensive, which is…

Liquidity ratios reflect the company’s ability to pay its bills, debts and commitments. The more liquid the company is, the more cash it has to finance its operations. By analyzing the financial reports and looking at the liquidity of the company we can determine if the company can meet its short-term commitments by liquidating the short-term assets, which is really important to creditors and investors. One of the first ratios used to determine and analyze Wendy’s liquidity and compare it…

In 2014, firm’s current ratio was equal to 1.90, which is 0.03 increase compared to 2010. Firm’s quick ratio increased from 1.68 to 1.73 in the period of 2010-2013. The firm’s cash ratio went up from 0.64 to 0.69. Although current ratio and quick ratio above 1 indicate sufficient liquidity, a cash flow analysis revealed KMG’s high dependence on JV and associates in cash generation. As it…

The calculations for the 5 broad classes of financial ratios using the 2014 financial data offers evidence that shows which company had a better performance in 2014. First off, Short-term solvency (or liquidity ratios) is defined, as the primary concern is the firm’s ability to pay its bills over the short run without undue stress. The results from the 2014 current ratio of Dunkin’ Donuts is 1.24 times and for Starbucks the current ratio is 1.37 times. So, another way to say that is that Dunkin’…

grants. Consequently, in conducting a ratio analysis of the financial statements provided for the years 2009 and 2010 determined the WAMC’s financial health is rather poor. The ratios were calculated to determine the liquidity, solvency and profitability of WAMC, those ratios helped interpret WAMC’s overall financial health. Concluding from the financial statements provided for the years 2009 and 2010 that WAMC was financially weak.…

Interpreting Ratios Current Ratio - Soda Pop Organics current ratio is 1.07. What this means is that for ever $1 Organics owes, it has $1.07 in assets to payback those debts. This ratio is favorable and a good indication that Organics is managing their assets and liabilities wisely. Future investors can feel good about this ratio because the risk based on this metric is low. Shareholders should also be pleased with this ratio as the management team is effectively managing their debt. Quick Ratio…

1) Calculate all of the ratios listed in the industry ratios table for East Coast Yachts. Industry Ratios Ratio Formula Values Answer Lower quartile Median Upper quartile Current ratio current assets/Current liabilities 51,123,050/50,584,750 1.01 0.86 1.51 1.97 Quick ratio current assets-Inventory/Current liabilities (51,123,050-20,149,650)/50,584,750 0.61 0.43 0.75 1.01 Total asset turnover sales/total assets 611,582,000/401,558,750 1.52 1.10 1.27 1.46 Inventory turnover cost of goods…

profitability and solvency ratios. This means that CanGo’s return on net sales is better than Amazon, however, return on net sales is not when compared to Amazon. The debt ratio is another way to see how well a company is managing their finances. As shown in the Profitability VS. Solvency bar chart, we can see that CanGo is doing their best out of the 3 companies to keep their debt ratio low. Current Ratio vs. Acid (Quick) Ratio The current ratio vs. acid (quick ratio) below shows that CanGo…

day’s sales uncollected ratio is extremely low, which is good. Asset turnover ratio describes how many times a year a company uses its assets to generate a profit, it can be said that every company wants a high ratio. In this case Macy’s turnover ratio is 1.3 for year 2013, although this is high compare to previous years, this is a place that no matter what but improvement can be a goal. In total debt to equity, industries who has more variables tend to have lower ratios, while industries that…

Evaluating Profitability: RATIO: Based on Fire Eaters Historical Financial Data At Virtual Lakes Store (2013-2016) 2013 2014 2015 2016 Net Profit Margin -173.58% -47.83% -10.88% 12.56% Gross Profit Margin -188.24% -15.25% 37.86% 69.76% Return on Total Assets -40.52% -35.00% -11.60% 18.35% Return on Owner's Equity -65.86% -58.55% -21.12% 38.79% Analysis: Initially the negative relation briefly shows that Fire Eaters had a greater expense compare to its income. At its most negative Net…