Financial ratios Essays

  • 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

  • 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

  • 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

  • Comparative Analysis Of J. C. Penney's Corporation

    781 Words  | 4 Pages

    RATIO ANALYSIS OF J.C. PENNEY CORPORATION & KOHL?S CORPORATION Comparative Analysis by Ratio Analysis of J.C. Penney Corporation & Kohl?s Corporation Dora I. Gonzalez Devry University Abstract J.C. Penney Company, Inc. and Kohl?s Corporation are two of the largest apparel and home furnishing retailers with stores across the US and Puerto Rico. The primary objective of analyzing financial statements is to identify major changes in trends, investigate causes of underlying changes

  • Swot Analysis Of Avon Company

    849 Words  | 4 Pages

    Liquidity Ratios: This ratio used to measure the company's ability to pay off its short-term debts as they come due by using the company's current or quick assets, • Current ratio= current assets current liabilities AVP= 1.34 ULTA= 2.9 REVLON= 15.86 • Quick ratio = ( current assets - inventory) current liabilities AVON= .94 ULTA= 1.12 REVLON= 15.26 The safe rate for current ratio is 1 or up, that means the current assets can cover the current liabilities, we see that the current ratio for AVP is

  • Newmont Case

    977 Words  | 4 Pages

    Cash Ratio measures the cash available to the company in order to satisfy its short-term liabilities. Cash ratio of at least .5 is better because there are very few companies that actually have enough cash to cover their current liabilities. The cash ratio is the most conservative look at a company’s liquidity since it only looks at the cash. This ratio is an indication of a company’s creditworthiness and is used to decide how much credit should be extended to the company. In the case of Newmont

  • Case Study Kroger

    348 Words  | 2 Pages

    The earnings to fixed charges ratio explains how well a company’s earnings will cover its fixed charges. The higher this number the better for Kroger. Kroger had an earnings to fixed charges ratio of 4.4 (Kroger’s earnings were 4.4 times greater than their fixed costs), which is the second lowest among this group of four. They have less financial flexibility than both Walmart and Target, who had 7.2 And 5.90 respectively. Kroger has the lowest gross margin of the group of four studied here. Gross

  • Kohl's Vs Jcpenny Case Study

    626 Words  | 3 Pages

    both Kohl’s and JCPenny’s finical statements it is clear that Kohl’s is in a better financial position. Starting with over an 8-point gap between Kohl’s 3.50 net profit margin, to JCPenny’s -4.06 net profit margin. This proves that Kohl’s is more profitable making 3.50 dollars of income for every item sold, on average. Kohl’s is the better company to invest in but JCPenney is slowly pulling themselves out of a financial crisis. According to Investopedia, “Kohls is opening a new outlet store it calls

  • Boston Beer Company Case Study

    540 Words  | 3 Pages

    shown in the graph above, The Boston Beer Company Inc. experienced a very slight increase in their liquidity ratios over the two-year period evaluated. The liquidity figures have an effect on the short-term performance of a business because these are used to determine a company’s ability to pay off its short-term debt obligations. Profit Margin is part of a category of profitability ratios calculated as net income divided by revenue, or net profits dived by sales. These are expressed as percentage

  • Bx Financial Analysis

    1455 Words  | 6 Pages

    Introduction Financial statements provide vital statistics about business’s internal accounts. Albeit these figures are useful they carry less weight, than performing accurate analysis using accounting ratios and comparing it with either the previous year’s ratios, or with the same averages of industry competitors. Section 1 For this the assignment, ratio analysis was performed evaluating BCX’s performance during the past 5 years, focusing on the following ratios:  Profit margin  Asset Turnover

  • Montagne Company Case Summary

    949 Words  | 4 Pages

    it will not fail o Business risk= more business risk means more variability in operating profit which means a higher beta so adjust the Beta coefficient to match it with the level of financial risk incurred by the company. • Beta: Sterling’s proposed acquisition is 0.99 (beta is leveraged on the debt/equity ratio) [Exhibit 7] • Growth opportunities were limited and its business was under constant pressure • The company’s annual sales volume (in units) had increased by less than 1% per year, because

  • Khind Holdings Berhad Swot Analysis

    2240 Words  | 9 Pages

    current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. In the year 2012, KHB had a current ratio of 1.688 but it comes to decrease in 2013 to a 1.642. The ratio in the year 2014 was 1.670 indicating a slight increase. The competitor of KHB, the PMMB had a current ratio of 4.785, 4.012 and 3.622 from the year 2012 to 2014 respectively. A current ratio should be more than 2.0 as a higher current ratio indicates

  • Target Financial Summary

    866 Words  | 4 Pages

    retail stores and 38 distribution centers in the United States. The first official store was opened in 1962 in Roseville Minnesota and have thrived every since. I will be analyzing Target’s financial statements and communicating the results to our decision makers (Target 2017). Regarding Target’s initial financial start, Target was founded by George Draper Dayton, who was as a banker and real estate investor. Dayton attended a church that eventually burnt down during the Panic of 1893, and next to that

  • Analysis Of Smithson Plc

    3604 Words  | 15 Pages

    FINANCIAL MANAGEMENT AND CONTROL NAME – SIDDHARTH SHAH ASSIGNMENT CODE – PGBM01 BATCH CODE – MBSD51403A FIN NUMBER – G1389457X TUTOR – MANEK MUKESH TABLE OF CONTENTS 1.0 Smithson plc ………………..…………..……………………………………….. pg 03 1.1 Profitability ratio…………………………..……………………………….……. pg 03 1.2 Liquidity ratio…………………………………………………………………… 03 1.3 Efficiency ratio……………………………………………………………………pg 04 1.4 Gearing ratio………………………………………………………………………pg 05 2. Report to the board of Smithson plc………………………………..……………

  • Fin Comparative Analysis Problem: Amazon Inc. Vs. Walmart Stores, Inc

    996 Words  | 4 Pages

    Inc. ACC/290 April 24, 2017 Introduction Inventory turnover is the ratio that shows how many times in a year in which a firm translates its inventory into sales. It ensures that a business has enough inventory as compared to its sales level. A high ratio indicates that a firm is performing better since many customers come to buy as shown by increased sales implying that much of the stock is sold. A low turnover ratio indicates that few customers are buying from the firm and thus the sales are

  • Swot Analysis For Ssnc

    1434 Words  | 6 Pages

    Long SSNC, Price Target $49, 46% Upside, 24% IRR Over 3 Years. Summary Value accretive roll-up company that buys assets at ~11x EBITDA pre-synergy, ~7x EBITDA post-synergy, that is trading at trough multiple. SSNC has a decent runway of organic growth driven by 3rd party private equity FA and regulatory demand. Business Description SSNC is the 2nd largest fund administrator in the world and the only one who provides services across front, middle and back office. Due to the nature of the industry

  • Quick Ratio Analysis

    1407 Words  | 6 Pages

    Quick ratio Quick ratio of a company is the ratio of sum of cash, cash equivalent, accounts receivable and marketable securities to its current liabilities. It measures short term solvency position of a company with respect to its payment ability from most liquid assets. In this study, it has been observed that IHG's quick ratio in 2009, 2010, 2011, 2012 and 2013 were 0.39, 0.49, 0.62, 0.76 and 0.63 respectively. Quick ratios of IHG has rose consistently from 2009 to 2012 and then dropped in 2013

  • Cineplex Financial Statement

    417 Words  | 2 Pages

    Analysing a financial statement is a tool to determining the past, present and future performance of a firm. The Cineplex Inc. was founded on 26 October of 2003. In January 2011, Cineplex convert itself to an Ontario corporation for business purposes and efficiency in tax. Cineplex Inc. which is one of the largest motion picture theatre in Canada, operates under these brand names: Cineplex Odeon, Galaxy Cinemas, SilverCity, Cineplex Cinemas, and Cineplex VIP Cinemas. The total revenues in 2014 has

  • Lululemon Financial Analysis Essay

    400 Words  | 2 Pages

    a number of prominent financial themes that emerge from any detailed analysis of Lululemon. Some of these key themes are as follows: (a) Lululemon Athletica’s growth rate (as measured by revenue) is declining progressively, providing some evidence that the company is running up against market capacity in its current niche; (b) Lulu remains an efficient and profitable company, supporting the inference that the company’s slowing growth isn’t function of operational or financial weaknesses, but rather

  • Canadian National Railway Company Case Analysis

    1016 Words  | 5 Pages

    Canadian National Railway Company- Shares of Canadian National Railway (NYSE: CNI) have risen about 20% to the current level of $57.02 from its 52 weeks low of $47.62 on January 20, 2016. In my opinion, this trend will continue for the rest of the year due to the fact that the company is making various moves to support its growth during this weakness in the energy-related commodities. These moves include accelerated growth in its Franchise business, investment in the long-term growth platforms, debt