Receivables Turnover ratio. I believe that based on the RTR , the overall risk and profitability of Athletic Attic has improved from 2012 to 2013 because the ratio of turnover of receivables has increased. This means accounts receivables are collected faster in 2013 than…
Download file "Financial statement" to see previous pages...
(Strategos, 2014) An inventory turnover is the number times per year inventory is replaced. A quick turnover is desired in business because it is a reminder that inventories should not stay in the shelves too long. A high ratio means that sales are doing good and shows lower risk of too many unsold stocks. Let us write or edit the essay on your topic "Financial statement" with a personal 20% discount.. Try it now Inventory turn-over that is out of proportion to the industry norms is an indication of marketing problems of management like poor customer services
3. Current Ratio. Although the Current Ratio for 2013 is lower than 2012, this should not be a matter to be worried about by creditors, because the ratio is still high. This means company can still pay its maturing obligations. The accounting rule states, “the higher the ratio, the more capable the company is of paying its obligations and a ratio of below 1 means company would not be able to pay its obligations” (Accounting Coach 2014)
4. Debt to equity ratio. The D/E shows a slighter decrease in 2013. A 0.25 D/E ratio means the company has not been aggressive in financing its growth. A low D/E is favorable to stockholders because it does not use a lot of debt to increase its operations. A D/E is the “proportion of company’s asset supplied by company’s creditors vs. the amount supplied by the stockholders.”(Accounting Coach 2014).
5. Gross profit ratio. As in previous ratios, the 2013 GPR shows variance with 2012 exhibiting a lower ratio. GPR is the % of sales available for expenses and profit after the cost of goods sold is deducted, it is otherwise known as gross profit margin. I believe the average is not risky because Industry average of 33.91% is not very far from 0.3461 our case.(CSIS Market, 2014) .
6. Return on assets means the number of cents earned for every dollar of assets. A high value of ROA high means business is profitable. Comparing the 0.41% ROA to the industry average, which
...Download file "Financial statement" to see next pagesRead More
Cite this document "Financial statement"
(“Financial statement Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Financial statement Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/miscellaneous/1644738-financial-statement
(Financial Statement Essay Example | Topics and Well Written Essays - 250 Words)
Financial Statement Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/miscellaneous/1644738-financial-statement.
“Financial Statement Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/miscellaneous/1644738-financial-statement.
Cited: 0 times
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC "Financial statement"
Currently the company is in a process of expanding the products it offers by making different types of shoes that meet different markets demands. For example the company is in the process of manufacturing PHONESHOES that are specifically designed for helping business executives to carry out their operation more efficiently and effectively (Timothy, Loretta, & Kenneth, 2011).
The author states that the motivating factors for the management’s engagement in revenue recognition fraud may be due to a weak season where the organization predicts unimpressive financial prospects. In addition, unscrupulous management systems could get involved in outright revenue recognition fraud.
Therefore, after identifying the potential users of statements, it assesses the qualities essential for financial statements reporting and evaluates the importance of financial statements formats and technology in the process of accounting and financial reporting.
Liquidity has two dimensions. Ease of conversion versus loss of value. Any asset can be converted into cash if its price is cut sufficiently. A highly liquid asset is therefore one that can be sold without significant loss of value. An illiquid asset is one that cannot be quickly converted into cash without a substantial price reduction.
It will go a long way in streamlining and prioritizing its budgetary and planning objectives. Financial forecasting is also of vital importance for this company, considering the fact that it is a listed company and is being closely scrutinized by bankers and investors as never before.
According to the discussion financial statement analysis is differentiated from other approaches fundamentally because its main function is to assess the financial condition of an organization based on its financial statement. Several types of analyses can explain an organization’s financial condition.
They are the accounts or activities found on the income statement, by adding all the money gotten from the customers minus the monthly expenses.
The investing activities are those amounts generated by a company’s
The author states that the amounts for the assets are reported in accordance to prevailing average rates that were obtained from current market trends, such as land, building, etc. The tax expenses that reported are in the financial statement are based on the average taxations policy of the country that is subjected to change in times to come.
2 Pages(500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Save Your Time for More Important Things
Let us write or edit the essay on your topic
with a personal 20% discount.