Financial ratios Essays

  • Financial Ratio Analysis Paper

    2004 Words  | 9 Pages

    FINANCIAL RATIO ANALYSIS OF SHREE RENUKA SUGARS (YEAR 2011-2015) LIQUIDITY RATIOS Liquidity ratios are a class of financial metrics used to determine a company 's ability to pay off its short-terms debts obligations. Generally, higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. The following Table shows the ratios for Years 2011-2015 for Shree Renuka Sugars: Ratio 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 Current Ratio

  • Ryanair Financial Ratio Analysis

    2985 Words  | 12 Pages

    Term of Reference Background Objective Executive Summary Financial Ratios Formula Financial Ratios Analysis of BA and Ryanair Horizontal Analysis of Income Statement Vertical Common Size Analysis of Balance Sheet Comparison of the two companies Strength and Weaknesses Conclusions/recommendations --- Terms of Reference a) Background A success degree of one company can be measured by comparing its financial performance to its competitor. By assessing two companies, this will enable

  • Financial Ratio Analysis Essay

    1750 Words  | 7 Pages

    5. Financial Ratio Analysis- Interpretation AEON Company Berhad From the year 2012 to the year 2013, the current ratio of AEON has decreased by 0.12 times. The company has RM 0.79 in current assets for every ringgit in current liabilities in the year 2012 while it has RM 0.67 in current assets for every ringgit in current liabilities in the year 2013. This shows that the company may have problems paying its bills on time because the current ratio of these two years is below 1 which means the current

  • Case Summary: Financial Ratio Analysis

    971 Words  | 4 Pages

    3. FINANCIAL RATIO ANALYSIS 3.1. PROFITABILITY (Ho, 2013) mentioned that the gross profit ratio assesses the gross profit generated per dollar sales. A drop in this ratio can signify more competition in the market, lowering selling prices or a higher cost of purchases. A rise in this ratio can signify that the firm has a competitive edge in the market and so it is able to charge higher prices for its products, or the firm is able to obtain its supplies at a lower cost. If this ratio remains stable

  • Ratio Analysis: Financial Ratios

    1612 Words  | 7 Pages

    Financial Ratio A financial ratio or accounting ratio is a relative magnitude of two chose numerical values taken from an enterprise 's financial statements. Regularly utilized as a part of accounting, there are many standard ratios used to attempt to assess the general money related state of an enterprise or other association. Money related proportions might be used by chiefs inside a firm, by present and potential investors (ratios) of a firm, and by a company 's loan bosses.Financial analysts

  • Financial Ratio Analysis

    1598 Words  | 7 Pages

    3. Introduction to Financial Ratios Financial ratios are dealings determined from a firm's financial information and used for comparison purposes in financial means. Some of the financial ratios are Profitability ratios, Liquid ratios, Capital structure ratios, Assets management ratios and Market value ratios. Sub-categories of these ratios are defined below. 3.1 Profitability Ratios A category of financial metrics used to evaluate a business's ability to generate profit as compared to its expenses

  • Financial Ratio Analysis Disadvantages

    826 Words  | 4 Pages

    Financial Ratio Analysis - Definition, Purpose, Advantages, and Disadvantages Firstname Lastname Institutional Affiliation   Financial Ratio Analysis - Definition, Purpose, Advantages, and Disadvantages Meaning of Financial Ratios: Financial Ratios are essential quantitative financial tools that are comprehensively used by financial experts to analyze a company’s financial performance such as business evaluation, fundamental analysis, business analysis, etc. In financial ratio analysis, an

  • Limitations Of Financial Ratio Analysis

    1084 Words  | 5 Pages

    profit 2. Ratio analysis on profitability, liquidity, solvency and efficiency and comparison of ratios with industry competitors. Trend Analysis: Trend analysis is used to reveal the trend of items for a certain period and is used in combination with ratio analysis to spot a particular trend, explore the causes for the trend and make necessary preparation for future projections (Vishal and Anchal, 2015). Ratio Analysis: Ratio analysis is the technique of calculating a number of accounting ratios from

  • Financial Analysis: Ratio Analysis In The Financial Industry

    758 Words  | 4 Pages

    Ratio Analysis is a financial tool that is used to compare information that is provided by the people working in the financial sector of a company. The results that we obtain from ratio analysis tell us about the financial health, position, and cash flows of a company. They tell us everything there is to know about the cash that is flowing in and out of the company and also how well the company is doing financially. Ratio analysis is used not only by people working within the company but also by

  • Ratio Analysis In Financial Performance

    1972 Words  | 8 Pages

    SUMMARY The ratio analysis is a quantitative tool to analyze the financial statement of the organization. The ratios are widely used tool to know the performance of the company; each and every ratio is finally end up with the meaning full information related to the financial position of the organization. The ratios are also help to the financial analyst to interpret the financial statement to know the strength and weakness of the organization as well as historical performance and current financial condition

  • Financial Analysis: Use And Importance Of Ratio Analysis In Business

    2542 Words  | 11 Pages

    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. It is the way of by which financial stability and of the concern can be judged. These ratios have wide applications

  • Walmart Financial Ratio

    954 Words  | 4 Pages

    - Comparison of companies: Ratio analysis help companies to compare their company size, growth, market share and market position with other companies. For example: Walmart compare their market share with other retail store such as target, Sam’s club, Costco. Limitations of Financial Ratio Financial ratio analysis is useful tool that lots of investor, analyst and creditors use to analyze company’s financial health, however despite of usefulness financial ratio has some limitations that analyst have

  • Financial Ratios In The Hospitality Industry

    1254 Words  | 6 Pages

    Financial ratio - The extent to which financial ratios analysis is applicable when measuring a company performance in hospitality industry which is doing the business across different segments. 1.2 Background Financial ratios are some of the most widely used tools to evaluate the performance, solvency and viability of a company going forward. They are obtained as a result of comparing two different financial entries of values contained in the business company’s financial statement. As such the

  • Indian Financial Ratio Analysis

    2454 Words  | 10 Pages

    The Indian financial system comprises of four segments or components. These are financial institutions, financial markets, financial instruments and financial services. Banks come under the financial institutions segment. Financial institutions are intermediaries that mobilize savings and facilitate allocation of funds in an efficient manner. The Indian financial system was quite well developed even prior to India’s political Independence in August 1947. Both foreign and domestic banks were present

  • Limitation Of Financial Ratio Analysis

    853 Words  | 4 Pages

    Financial ratios have been very crucial in understanding the financial conditions of any business form of organization & are commonly used as a tool in calculating & evaluating an organization’s performance. Various studies & research have proven the economic significance & importance of these ratios in analysing the organization’s current efficiency. But the major limitation in using them is that not one ratio can give the overall performance of the organization, we need more than one ratio to

  • Essay On Financial Ratio Analysis

    1328 Words  | 6 Pages

    Among these tools is financial ratio analysis used for comparative purposes. Aside from it, the annual financial statements can be analyzed using horizontal analysis which highlights the trend of various figures from revenue to expenses and cash flow over the reporting periods. Vertical analysis emphasizes the relative size of each item as a composition of a set of numbers such as operating expenses as a proportion of total sales revenue. When dealing with financial forecasts and business plans

  • Company Financial Analysis: Ratio Analysis

    1116 Words  | 5 Pages

    Ratio Analysis The purpose of this financial analysis is to identify several aspects of the company’s financing behavior. With this ratio analysis it is to know the degree of liquidity of the company from a management perspective, how they impact the firm’s ability to leverage new distinctive competences. The ratios that will be presented below are used in comparision to other companies in your industry and internal benchmarks. Profitability Ratios. These ratios

  • Ratio Analysis In Financial Management

    6249 Words  | 25 Pages

    The objective of ratio analysis is to judge the earning capacity,financial soudness and operating efficiency of an business organization. The use of ratio in financial management analysis helps the management to know the profitability,financial position (liquidity and solvency) and operating efficiency of an enterprise. There are various advantages derived by the use of accounting ratios. It simplifies, summarizes and systematizes a long array of accounting

  • Summary: Financial Ratio Analysis

    752 Words  | 4 Pages

    According to Drake (2010), financial statement analysis is financial statement analysis is the process of selection, evaluation and interpretation of financial data. According to Ginevicius et al (2001), financial analysis evaluates the liquidity, efficiency, profitability, leverage in short term as well as long

  • Financial Manager Ratio Analysis

    907 Words  | 4 Pages

    1. The financial manager is a person responsible for the supervision and handling of the financial affairs of an organization. He have the most varied role in the organization, every decision made by the financial manager will impact the whole organization. In a retail store, the main duties of the financial manager is developing ways of making the store more profitable, planning for new systems implementation, preparing and interpreting the quarterly profit statement to influence the priorities