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Financial ratio Essay Topics & Paper Examples

East Coast Yachts key

1. Calculate all of the ratios listed in the industry table for East Coast Yachts Current ratio=CA/CL= 14,651,000/19,539,000=0.75 Quick Ratio=(CA-Inventory)/CL=(14651000-6136000)/19539000=0.44 Total assert turnover=Sales / Total Assets=167310000/108615000=1.54 Inventory turnover=Cost of Goods Sold / Inventory=117910000/6136000=19.22 Receivable turnover=Sales / Accounts Receivable=167310000/5473000=30.57 Debt ratio(TA-TE)/TA=(108615000-55341000)/108615000=0.49 Debt-equity ratio=TD/TE=33735000/55341000=0.61 Equity multiplier=TA/TE=108615000/55341000=1.96 Interest coverage=23496000/300900=7.96 Profit margin=Net Income / Sales=12562200/167310000=0.07 Return on asserts=Net Income / Total Assets=12562200/108615000=0.12 Return on equity=Net Income / Total Equity=12562200/55341000=0.23 2. Compare the performance of East Coast Yachts to the industry as a whole. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated as inventory divided by current liabilities. How do you interpret this ratio? How does East Coast…

BILABONG Australia – financial statement analysis assignment

BILABONG Australia – financial statement analysis assignment ACCT 5910-Business Analysis and Valuation Contents Executive summary……………………………………………………………………………………………………3 Executive summary The purpose of report is to provide a comprehensive analysis of Billabong International Limited. This report is primarily based on a trend analysis of Billabong’s financial performance ratios from 2009 to 2011, common size table of the balance sheet and income statement and analysis of Billabong’s cash flows. Expect to provide a basis understanding of the company’s recent situation and future valuation. The company we compared, as a part of the surfwear industry is Quiksilver. Billabong is a multi-brand Australian company that was established by Gordon and Rena in 1973 in Gold Coast. After decades of expansion and restructuration of capitalization, Billabong’s shares…

Managerial Finance

ASSIGNMENT BMMF5103 MANAGERIAL FINANCE 15 July 2013 QUESTION 1 a) Maximizing shareholder wealth is a “moral imperative” for financial manager means managers are supposed to work for shareholders who are the actual owners of a company or corporation. Shareholders elect company directors who in turn hire managers to run the company on day to day basis with the view to make profit for the company. Managers are paid for their services rendered to the company whereas the shareholders own the company. As such morally managers should pursue policies that enhance shareholder value with the primary objective focused on stockholder wealth maximization. b) Managers make key day-to-day decisions to maximize shareholder value. But how do the owners of a business know…

Financial Ratios and Stock Return: Evidence on selected Plantation Companies in Malaysia

UNIVERSITI MALAYSIA SARAWAK (UNIMAS) SEMESTER 2 2012/2013 FACULTY OF ECONOMICS AND BUSINESS (FEB) EBF 3183 FINANCE SEMINAR (Group ASSIGNMENT) Financial Ratios and Stock Return: Evidence on selected Plantation Companies in Malaysia NAME:VICTORIA AK JUTI 28578 VENOSHNI A/P MANOGARAN 28577 PHUA WEE WEE 27952 TEOH CHIEN NI 28513 LING LING26752 GROUP:1 PROGRAMME:FINANCE Financial Ratio and Stock Return: Evidence on selected Plantation Companies in Malaysia Abstract This paper is to investigate the predictive ability of several financial ratios for stock return in Malaysia specifically in plantation industry. 23 listed plantation companies were analysed for the period from 2008 to 2012. Four of the common financial ratios were take into consideration in this study. These financial ratios include dividend yield (DY), book to…

FedEx vs UPS – Battle for Value

The Battle for Value, 2004: vs. United Parcel Service, Inc. (“UPS”) and FedEx Corp. (“FedEx”) are two of the largest air delivery and freight services. With the current transportation agreement between the United States and China the market in which these companies conduct business is going to grow. This is a positive agreement for both UPS and FedEx, meaning that both companies are attractive in terms of investing. However, it is recommended that only one of them should be invested in because they are very closely correlated to one another. Since this is the case it is important to look deeper into each company to determine the levels of attractiveness. Business Plan Overview Even though FedEx has the early lead…

Bed Bath and Beyond Case

Statement of Problem Bed, Bath and Beyond (BBBY) currently has $400 million more in cash than they need for ongoing growth and operations requirements. While the company is financially sound analysts and investors worry about the company’s capital structure decisions. Investors do not want to see that much cash on the books and worry that the current capital structure is not the most effective for the future. They prefer that BBBY change their capital structure by paying out excess cash and issuing debt. This could allow BBBY to improve their return on equity and raise earnings per share. Given the low interest rates available it seems like the perfect time for BBBY to add debt to its capital structure. Until…

Scandi Home Furnishings Inc

Scandi Home Furnishings Case Kaj Rasmussen founded Scandi Home Furnishings as a corporation during mid-2007. Sales during the first full year (2008) of operation reached $1.3 million. Sales increased by 15 percent in 2009 and another 20 percent in 2010. However, profits after increasing in 2009 over 2008 fell sharply in 2010 causing Kaj to wonder what was happening to his “pride and joy” business venture. After all, Kaj has continued to work as close as possible to a 24/7 pace beginning with the startup of Scandi and through the first three full years of operation. Scandi Home Furnishings, located in eastern North Carolina, designs, manufactures, and sells Scandinavian-designed furniture and accessories to home furnishings retailers. The modern Scandinavian design…

Similarities and Difference Bluenile.Com, Diamond.Com and Jewerlyexchange

CHAPTER 3 WORKING WITH FINANCIAL STATEMENTS Financial statement information is often our ONLY source of information. Consequently, we use the information we have and make adjustments where appropriate. 1. Ratio Analysis ♦ Short-Term Solvency or Liquidity Ratios – Measures the ability of the firm to meet its current (short-term, < 1 year) obligations. • Liquidity is defined as the ability to convert assets to cash quickly without a significant loss in value • Liquidity vs. Profitability trade-off Current ratio = current assets / current liabilities Quick ratio = (current assets – inventory) / current liabilities • Also referred to as the “acid-test” ratio. Cash ratio = cash / current liabilities ♦ Long-Term Solvency Ratios – This group of ratios really…

Fundamaental Analysis of L&T

FUNDAMENTAL ANALYSIS OF LARSEN & TOUBRO LTD. TABLE OF CONTENTS CHAPTER| PARTICULARS| PAGE NO.| 1| INTRODUCTION , OBJECTIVES & METHODOLOGY| 2| 2| FUNDAMENTAL ANALYSIS / EQUITY RESEARCH| 4| 3| FACTORS,TERMINOLOGIES WITH RATIOS| 9| | | | 4| INTRODUCTION OF LARSEN AND TOUBRO FOR VALUATION| 34| 5| PESTEL ANALYSIS, PORTER FIVE FORCES MODEL, SWOT ANALYSIS : L&T| 38| 6| LARSEN AND TOUBRO EQUITY VALUATION| 43| 7| INTERPRETATION/ ANALYSIS| 51| 8| CONCLUSION| 54| 9| LIMITATIONS FOR THE STUDY| 55| 10| BIBLIOGRAPHY| 56| 11| ANNEXURE: LARSEN & TOUBRO LTD: P&L STATEMENT & BALANCE SHEET| 57| Chapter 1 INTRODUCTION, OBJECTIVES AND METHODOLOGY A. Introduction: The process of fundamental analysis involves examining the economic, financial & other qualitative as well as quantitative factors related to…

Financial Analysis of Steel Industry – Arcelormittal and Us Steel

Stock Evaluation Project – Steel Industry Industry Analysis Steel is a part of metals and mining industry which is highly cyclical in nature, and when the economy at large suffers, this industry suffers with it. The most recent five years have been a struggle for this particular industry along with uncertain economic indicators, and steel companies’ stocks have trended downwards. The metals and mining industry is comprised of companies that engage in exploration, mine development, and ore mining. The industry includes precious metals mining for metals such as gold, silver, platinum as well as mining and processing industrial metals such as steel, copper, & aluminum. The industry is mature, cyclical, capital intensive and dominated by large companies. Some of the…

Financial Management Case Study-Payout: Gainesboro

Corporate Goals Management expected the firm to grow at an average annual compound rate of 15% and reach $2.0 billion in sales and $160 million in net income through 2011. Recent strategy of Gainesboro The company devoted a greater share of its research-and-development budget to CAD/CAM as to reestablish its leadership in the field. The company also underwent two massive restructurings, including selling two unprofitable lines of business, selling two plants, eliminating five leased facilities, and reducing personnel in 2002. Then, in 2004, the company implemented a second round of restructuring by altering its manufacturing strategy, refocusing its sales and marketing approach, and adopting administrative procedures for a further reduction in staff and facilities. The Artificial Workforce was an array of…

ZESPRI Case

1. Main issue Zespri’s main issues are to maintain their leadership in the industry and to increase New Zealand kiwifruit exports to $3 billion by 2025. In order to reach the objective, in existing market, Zespri should increase per capita consumption through more focused marketing. They also need to find emerging markets, research on new varieties and improve the 12 months supply program. 2. Porter’s five forces 2.1 Degree of rivalry The degree of rivalry is low. The four biggest kiwi fruit producing countries are China, Italy, New Zealand, and Chile. Despite of the higher production of China, it had become a net importer of fresh kiwifruit. From the exhibit 16, it demonstrates that New Zealand has the highest average…