Ratios

significance of ratio analysis:- The ratio analysis is one of the most powerful tools of the financial analysis. this is used to a device to analyze and interpret the financial health of enterprise. Ratio analysis is stands for the process of determining and presenting the relationship of items and groups of items in the financial statements. It is an important tool of the financial analysis. The main following are the points of importance of ratio analysis: a) Managerial uses of ratio…

known as the Golden Ratio. In fact, our brains are seemingly hard-wired to prefer objects and images that use the Golden Ratio. The Golden Ratio is the limit of the ratios of successive terms of the Fibonacci sequence. The Fibonacci ratio is very close to the Golden ratio. The mathematical ideas the Fibonacci Sequence leads to, the Golden Ratio, and the Golden Spirals. As the number increases, the ratio becomes closer to 1.618. For instance, the ratio of 3 to 5 is 1.666. But the ratio of 13 to…

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. •…

information available to do a detailed valuaton of the company. However, the current ratio of the company is found to be more than 1 which shows a positive outlook. Current Ratio is a liquidity ratio and measures the ability of a firm to pay its Current (Short term) liabilities with its Current (Short term) assets. A ratio of greater than 1 would indicate availability of more current assets per unit of current liabilities. A ratio of less than 1 is considered to be risky as the firm will face…

This all being said, Verizon is worth the hype. All of their numbers are increasing at a steady and constant rate with no dismal future in sight. Here are a few short analyses of what financial accounts are supporting Verizon: - Profitability Ratios: This ratio varied from industry to industry. Some company that have an overall profit margin of 25% might seem relatively low. However, if we compared it to other company in the same industry with a profit margin of 16%, that 25% doesn’t seem as…

care possible for all patients and to do no harm. The first question that is raised is how does a nurse manage a 1:5 or 1:6+ ratio while maintaining the ethical standards of a nurse? In the first opened question of the survey, nurses were asked, to explain their feelings from a previous closed question that asked if they felt overwhelmed with current patient-nurse ratios. To recall and summarize the data, out of the respondents, 3 quarters of respondents stated that they felt different degrees…

The ROE formula is Net income/Total stockholders’ equity. Three additional ratios impacting ROE include net profit margin, which is the percentage of profit remaining after meeting all expenses, total asset turnover rate, which indicates how efficiently corporations use available assets generating revenue. A higher asset turnover indicates better efficiency generating revenue with the assets available. The final ratio impacting the DuPont analysis is the equity multiplier, which indicates…

Financial Report Ratio Analysis Selected Companies: Tesco plc. & Sainsbury plc. Country: United Kingdom Table of Contents 1 Introduction 2 2 Analysis of Financial Performance of the Two Companies 4 2.1 Profitability 5 2.1.1 Gross Profit margin 5 2.1.2 Operating Profit margin 5 2.1.3 Net Profit margin 5 2.2 Liquidity 5 2.2.1 Current ratio 5 2.2.2 Quick/Acid test ratio 6 2.3 Efficiency 6 2.3.1 Asset Turnover 6 2.3.2 Receivables Collection Period 6 2.3.3 Payables Payment Period 6 2.3.4…

PART A Analysis of the Current ratio What is current ratio? The current ratio measures the liquidity of a business: liquidity is the short term solvency of a business or the ability of a business to pay off their short term debts. In order for Myer to a have positive financial ratio the company must ensure that their business had close to doubled the amount of assets to cover its liabilities. Myer must focus on how quickly their assets can be turning into cash as well as their ability to cover…

Ratio Analysis As of today, April 3, 2015, Micron has a P/E ratio of 8.66. Over the past 13 years, the highest P/E ratio of Micron was 115.75 and the lowest was 3.54. The overall median is 17.92. MU’s P/E ratio is ranked higher than 97% of the 1178 companies within the Global Semiconductor Memory Industry. This shows a positive sign of growth and that MU is outperforming other companies. The return on assets is 17.82% (as of Nov. 2014), while the minimum is -17.31% and the max was 18.39%. MU is…