Nobody downloaded yet

Financial Ratios Project - Case Study Example

Comments (0) Cite this document
Summary
This ratio rises in both companies but the current ratio in Target Corp. over the three years has been better than that of Wal-Mart Inc. since it slightly higher…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92% of users find it useful
Financial Ratios Project
Read TextPreview

Extract of sample "Financial Ratios Project"

Download file to see previous pages The figure in Wal-Mart is lesser than one though higher than that in Target (Marketwatch.com).
The receivables turnover ratio measures a companies’ effectiveness in collecting debt. Target’s ratio increases by a bigger margin than that of Wal-Mart over the three years. However, the receivables turnover ratio of Wal-Mart is still higher than that of Target. The inventory turnover ratio measures the effectiveness of a company in converting its inventory to sales. The ratio in Target decreases slightly over the three-year period while that in Wal-Mart increases.
The asset turnover measures the management’s effectiveness in utilizing the company assets to produce sales. This ratio increases by a bigger in margin over the three years in Target than in Wal-Mart though Wal-Mart still has a higher a ratio. The profit margin indicates how much profit is generated from a company’s sales. This ratio fluctuates in Target over the three years while it remains constant with slight changes in Wal-Mart.
Return on assets ratio measures a company’s effectiveness in utilizing assets to generate profits. Target’s return on assets ratio fluctuates over the three years. Wal-Mart’s ratio is higher than that of Target despite it decreasing slightly. The return on equity measures a company’s effectiveness in utilizing shareholder equity to generate profit. This ratio fluctuates in Target as it decreases slightly in Wal-Mart. Despite this, Wal-Mart ratio is still higher than that of Target (Marketwatch.com).
The debt to assets ratio measures the leverage level of the company in relation to its assets. Target’s debt to assets ratio is higher than that of Wal-Mart over the three years. Free cash flows ratio shows the amount of cash flow, which is attributable to the equity holders and debt holders of a company. The ratio fluctuates in both the companies though the one in Wal-Mart is higher. Times interest, earned ratio shows the ability of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Ratios Project Case Study Example | Topics and Well Written Essays - 1000 words”, n.d.)
Financial Ratios Project Case Study Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/finance-accounting/1686082-financial-ratios-project
(Financial Ratios Project Case Study Example | Topics and Well Written Essays - 1000 Words)
Financial Ratios Project Case Study Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/finance-accounting/1686082-financial-ratios-project.
“Financial Ratios Project Case Study Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/finance-accounting/1686082-financial-ratios-project.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Financial Ratios Project

Use of Financial Ratios

...?Finance and Accounting Contents Contents 2 References 6 Introduction Ratio analysis is a useful tool for analyzing a company, to predict about its future, but the result might get wrong if the factors of the variables are not taken in consideration. LEV and Sunder (1979) raised some basic questions like the structural relationship of the analyzed firms, the size of the firm; these factors are taken in consideration or not. The paper is an attempt to analyze the accuracy of the statement of Lev and Sunder using some evidences taken from real world, especially by doing the cross sectional analysis of financial ratios. Use of Financial Ratios...
4 Pages(1000 words)Essay

Methodological issues with financial ratios

...?Methodological Issues with Financial ments Contents Methodological Issues with Financial ments Contents 2 Introduction 3 Use of Financial Ratios 3 Critical Analysis 4 Conclusion 6 Reference: 7 Introduction Ratio analysis is an important tool to analyze the performance of a company, to predict about the future and doing the comparable analysis of two firms, in the same industry or different industry. In the year 1979 in their research paper Lev and Sunder raised the issue that the ratio analysis done by the researcher is often motivated by the tradition and convenience, they generally not consider the theoretical background of the...
5 Pages(1250 words)Essay

Financial Analysis of two companies- Iggle and Piggle

...cost includes, the cost of research and development, production costs, operating and maintenance costs, construction costs and phase out costs. Costs under each of these heads, for alternative projects, are calculated and the aggregates are compared to choose the best. Thus, life cycle system is a method of evaluating alternative courses of action early in the life of a project, so that the resources can be committed to the best. (Collier, 2006) Conclusion The financial analysis of the given case study involved lots of logical reasoning for the evaluation of the business performance of the two companies, Iggle plc and Piggle plc, and eventually it can be concluded that both the...
14 Pages(3500 words)Essay

Financial ratios

...Financial Ratios Financial ratios outline the performance of a firm as compared to its previous years’ performance as well as making a comparison between the firm and the industry. (Shim & Siegel, 2000) These two types of analysis are performed either through performing the trend analysis wherein year on year performance of the firm is compared with each other to know whether firm has performed better or not. Industry comparison is another method wherein the firm’s ratios are compared with the average ratios of the industry to explore what is the standing of the firm in terms of its performance with respect to other players in the...
2 Pages(500 words)Essay

Financial Decision Making Process within the Organisation

...and decision in various sphere of financial management (Brigham & Houston, 2007). The above mentioned ratios provide significant clues to the financial and operational effectiveness of the firm. However the profitability ratios show the combined effects of liquidity, asset and debt management on the operating results (Brigham, Ehrhardt, 2008). Investment Appraisal Methods Investment decisions are crucial for maintaining a safe and sustainable growth of any organisation. Before zeroing down on any project, it is very much essential to evaluate the project using different Investment Appraisal Methods. These methods include Net Present...
9 Pages(2250 words)Essay

Financial Ratios Analysis

...Operation Performance The hotel is located in Costa Mesa, California and has the capa of 310 rooms. The operation results have been presented asfollows: a. Occupancy percentage: This is defined as a ratio of rooms sold to rooms available. Total number of rooms sold is 7555. Given this, the occupancy percentage works out as 24.4. Normally, 60 to 70 is the average occupancy rate and hence the hotel has not performed well. This calls for aggressive marketing of rooms’ services. b. Cost of labor percentage: This is payroll related expenses as percentage of total revenue. This is in the order of 16.3%, which is somewhat lower than the industry average of 18-22%. c. Cost of food sold percentage: This is expressed as cost of...
3 Pages(750 words)Essay

Financial ratios analysis

.... Value realization and closure of loss-making business was also a part of the business strategy in the new millennium. Improving the capital structure was another part of the strategy (Press Release, 2001). The figures from the financial highlights & chairman’s statement The current financial year has been pretty good for the company, according to the chairman. The clothing market share of the company increased to 11% from 10.7%, where food has seen a 6th consecutive year of growth. Unadjusted profits have been up to £713.4 million, which is a 17.5% increase from 2009. KEY PERFORMANCE INDICATORS   2010 2009 Liquidity Ratios Current Ratio 0.8 0.6 Quick...
4 Pages(1000 words)Essay

Financial Analysis Wonderful Home Plc

...profitability and wealth creation. The project report mainly deals with the financial position as well as the performance of the home and office furniture retail industry. Financial performance analysis mostly interrelated with the ratio analysis. The key fundamental of the ratio analysis is the annual report of the concerned company. There are different ratios that indicate the financial performance of different sectors of the specific organization. Background of the study Here the research report is totally based on the financial performance of Wonderful Home Plc. (WH). Therefore, the study will...
10 Pages(2500 words)Essay

The Popularity of Financial Ratios in Multivariate Modeling

... The Popularity of Financial Ratios in Multivariate Modeling Introduction In this report, we will advise NENE limited on various projects they are hoping to take up. Different appraisal methods will be used including NPV, ARR, Cash flow and Payback period methods. Ratio analysis will also be used when evaluating two companies that NENE would like to acquire. For its cost allocations, traditional and Activity based costing methods will be used to advise NENE Limited management. Question 1 Cash flows Cash flows of Alpha: Time Cash flowing in or out (£000) Project Depreciation (£000) Project Disposal (£000) Cash Flows with...
16 Pages(4000 words)Essay

Financial ratios

...Financial Ratio Analysis Number: Lecturer: Financial Ratio Analysis Doha Bank Q.S.C. a) Liquidity Ratios i) Current asset ratio Current asset ratio = current assets/current liabilities = 65,428,874,000/52,818,101,000 = 1.24 or 124% ii) Acid test (quick) ratio Acid test = (cash + Due from other banks + investment securities)/ current liabilities = (3,435,761,000 + 9,180,420,000 + 11,703,577,000)/52,818,101,000 = 24,319,758,000/52,818,101,000 = 0.46 or 46% iii) Cash ratio Cash ratio = Cash Equivalents + Marketable Securities Current Liabilities = 24,319,758,000... ...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Financial Ratios Project for FREE!

Contact Us