Search

# Ratio Analysis - Assignment Example

Summary to assignment on topic "Ratio Analysis Assignment"
This can be used for comparing its performance with the past and for inter-company comparison. The important ratios of a company include Current ratio, Quick ratio, Return on equity (ROE),…

## Extract of assignment "Ratio Analysis Assignment"

Download file "Ratio Analysis Assignment" to see previous pages... Ideally it should be 2 i.e. the current assets of Tesco should be twice its current liabilities. As this ratio is less than 1 it signifies that the liquidity position of the company is not very strong (London Stock Exchange plc, “Fundamentals”, 2010).
The Quick ratio of the company is 0.63. This measures the ability of the company to pay its short term obligations out of the liquid assets and hence it ignores inventory.
Let us write or edit the essay on your topic "Ratio Analysis Assignment" with a personal 20% discount.. Try it now
As this ratio is less than one it signifies that the liquid assets of the company are not sufficient to meet its short term obligations.
The Gross Profit margin of the company is 7.76%. The gross profit of the company is calculated as excess of Operating income over Operating costs. This can be interpreted as the company is earning an operating margin of 7.76% (Tesco PLC, “Group income statement”, 2009).
The Net profit margin of the company is 3.98%. This can be interpreted as the net profit earned by the company is 3.98% of the sales. Here the net profit refers to the profit after tax i.e. after the adjustment of operating as well as administrative expenses.
The ROE of the company is 16.67%. This means that the company is earning a profit margin of 16.67% on the total equity. This is fairly good and shows that the company has been successful in earning a positive return for its equity shareholders.
The ROA earned by the company for the financial year ended February 2009 is 4.70%. This means that the company is earning a profit margin of 4.70% on the assets deployed in the business. It shows that the managers have been fairly efficient in using the assets. There is scope for further improvement in the utilization of the assets.
The dividend pay-out ratio of the company is 0.43. This means that the company is declaring 43 percent of its earnings in the form of dividend. From this ratio it is clear that the company is declaring a substantial portion of its earnings in the form of dividend.
Cite this document "Ratio Analysis Assignment"
• APA
• MLA
• CHICAGO
(“Ratio Analysis Assignment Example | Topics and Well Written Essays - 500 words”, n.d.)
Ratio Analysis Assignment Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1562475-ratio-analysis-assignment
(Ratio Analysis Assignment Example | Topics and Well Written Essays - 500 Words)
Ratio Analysis Assignment Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1562475-ratio-analysis-assignment.
“Ratio Analysis Assignment Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1562475-ratio-analysis-assignment.
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Ratio Analysis Assignment"
Corporate Finance Assignment: Financial Analysis
The company in the year 2011 had net sales of € 13,193,000, which seems to show that the company is a large scale company. The cost of goods sold represents 30.7% of the net sales and other expenses comprise around the same of 30.6% of the net sales. The company is incurring large amount of other expenses, the expenses other than the ones directly attributable to the production of good and services which almost equals the cost of goods sold which show the company has some room for cost cutting as the other expenses in the companies can be cut down and most of the times are less than the cost of sales.
10 Pages(2500 words)Assignment
THE FINANCIAL RATIO ANALYSIS ASSIGNMENT
These show that the less than 50% of the company assets are financed by debts. On the other hand the leverage ratios are slightly above 50% for the years 2012 and 2013. This means that borrowing has certainly increased and over 50% of the company is based on debts.
4 Pages(1000 words)Essay
Stockholders' Equity (Assignment 10)
Clearly identify each class of stock and indicate the number of shares in 000s. 2. Identify the changes in your firms equity accounts that occurred during the most recent accounting period. Not all firms
2 Pages(500 words)Assignment
Assignment
Mr. Jones decided to use the straight-line method to calculate depreciation. Mr. Jones started the year with no olives in inventory. He bought 5,000 green olives at 25 cents each in March, 10,000 at 50
3 Pages(750 words)Assignment
Assignment
Therefore, it is another effective method of communicating the threats of cancer to the public. Screening tests are helpful in early cancer detection. An example is the Pap smear test to screen for cervical cancer. The human papillomavirus that causes
4 Pages(1000 words)Assignment
Financial Reporting and Analysis Week 2 Assignment Harnischfeger Case
The increases can be attributed to the changes made, which now guaranteed that the company would have a more equitable allocation of the cost of all items included in the newly created accounting
1 Pages(250 words)Assignment
Financial ratio analysis
As a point of departure various ratios will be computed to ascertain the financial position of these companies in a bid to choose the best company to invest. This kind of information is beneficial to the investors, employees and even
3 Pages(750 words)Assignment
Assignment
The company has low P/E ration compared to other companies in the industry. This indicates that the investors are expecting lower earnings growth in the future from Hedrick Company. This could be a poor investment because the company
6 Pages(1500 words)Assignment
Financial ratio analysis
The following ratios will aid the analysis: leverage, liquidity, profitability, efficiency, and market value ratios. The analysis will cover one financial period (the year 2013). Based on the ratios, an inference will be made regarding a better performing
2 Pages(500 words)Assignment
CVS Caremark ratio analysis
CVS Caremark enjoys a great deal of financial stability owing to the uniquely diversified assets. The company’s strong base of assets and financial position provides enough resources to facilitate extensive research work on health care and pharmaceutical issues.
4 Pages(1000 words)Assignment
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 Assignment on topic Ratio Analysis Assignment for FREE!
+16312120006