Liquidity College Essays Samples For Students

1. The Financial Crisis: Avoidable but Inevitable
Theoretically, the financial crisis could have been avoided as investigation findings revealed . Under the circumstances however, the crisis was an inevitable consequence of everything that was going.
The Federal inquiry concluded that the 2008 financial crisis could have been avoided. The crisis was the result of “widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street”. It was the result of “greed, ineptitude or both” on the part of government and the private sector.
Among the persons found responsible for the crisis included Federal Reserve Chairman Alan Greenspan and, ...

(Financial and SWOT analysis and Recommendation to Identified Problems)

Background

The Walt Disney Company is an American diversified firm which focuses its business in mass media where it offers licensing services for the populace to consume their products among other services. Walt Disney headquarter is at Walt Disney Studios in Burbank, California. The firm was founded on October 16th, 1923 by Walt Disney and Roy O Walt Disney in Los Angeles, California. In its most recent full year financial statements, 2015 financial statement, the firm posted a net income of US$8.38 billion, operating income of US$14.68 billion and ...

Increasing liquidity(money flow) of a company

Liquidity is referred to as a business’s capability to meet financial obligations as they come due or accrue. Improving liquidity means having a large working capital. In other words, the business cash flow should exceed all liabilities. These are some of the ways in which liquidity can be increased
Accounts of receivables and payables should be well managed to ensure that liquidity is always improving. Both debtors and creditors have an impact on liquidity. A business should consistently review accounts receivable to make sure customers receive and pay bills on time thus increasing liquidity. Delays in sending bills, can ...

Comparative Financial Performance Analysis of Bayerische Motoren Werke (BMW) AG and Audi AG from 2010 to 2014

Introduction
This research paper is dedicated to make financial performance analysis of BMW AG for last five years from 2010 to 2014. Apart from the intra (within the company) analysis, the financial performance of BMW AG is compared to one of its business rivals in the German automotive industry. The competitor selected for comparative inter-firm (outside company) analysis is Audi AG. Not only in the German market, BMW AG and Audi AG compete in the global automobile manufacturing industry as well which makes the analysis presented in this report more important to all the market forces including existing shareholder ...

Analysis of Company's 2009 – 2011 Financial Statements

AT&T is a multinational telecommunications company headquartered in Dallas, Texas USA. Founded by the inventor of telephone himself Alexander Graham Bell it was originally named “The Bell Systems” in 1875 (Corp.att.com, Web). The company is currently serving over 100 million customers with fixed and mobile communication services along with its paid television and broadband products. AT&T is also one of the largest non-oil company in the United States in terms of market value. It is publicly traded stocks on NYSE, FWB, BMV and Dow Jones listed under the ticker symbol of “T” for telephone (Nyse.com, Web). As of ...

Executive Summary

This work is about the preparation, appraisal, and interpretation of financial statements. The financial statements considered herein are Cash Flow Statement, Trading Profit and Loss Account (Income Statement), and the Balance Sheet of SIMPLECO PLC. Based on the provided information, the above statements are prepared and analysed so as to determine the financial position of the company. The analysis involves calculation and interpretation of the financial ratios. These ratios fall under three categories: profitability ratios, liquidity ratios, and leverage ratios. A conclusion is finally made concerning the performance of the company based on its financial position.

Introduction

Financial statements play a ...

QUESTION 1

Adjusted Trial Balance
Statement of Comprehensive Income
Balance Sheet
QUESTION 2
Financial ratios
Financial analysis
Analysis of liquidity
Current ratio
At the of the financial year 2015, the current ratio for British Airways was 0.5965 indicating that its current assets could pay off 59.65% of its short-term liabilities. This further shows that the company had a low liquidity since its current assets were insufficient to meet the short-term obligations (Gibson, 2012, p. 243). The ratio declined from 0.6512 in 2014 and 0.6300 in 2013. The trend shows that the liquidity of British Airways improved in 2014 but declined in ...

Liquidity Ratios

These are ratios that help accompany to meet its short term maturity obligations. They are arbitrary measures that are used to verify a company’s capability to settle off short-term debts responsibilities. They basically measure the ability of the company to meet its near-term obligations. Current ratio and acid test ratio are example of liquidity ratio measures.

Current ratio

Current ratio is a liquidity measure that shows the rate at which a company is able to meet its short- term liabilities using its current assets. It indicates the capability of a company to meets its short term liabilities with its current assets. Companies with current ...

Introduction

The objective of this report is to perform the financial analysis of Next PLC and its competitor firm, Debenhams PLC. While both the stocks are listed on the London Stock Exchange(LSE), however, the report is solely attributed to uncover the fundamental analysis using the tool of financial ratios. Here, the attempt will be made using necessary ratios delineating profitability, efficiency, liquidity and gearing position of both the firms over the period of the past two years. The report shall finally be culminated discussing whether there is an improvement in the overall performance of each firm along with the ...

Company Analysis: Qatar German and Company Medical Devices

About the paper
The paper is commissioned to conduct a comprehensive financial analysis of Qatar German and Company Medical Devices(QGMD). As part of this analysis, we will be focused on discussing the outcome of the ratio analysis and will also compare the results with the industry averages. Important to note, as we are looking for a detailed analysis, we will be using multiple financial ratios relating to liquidity, profitability, solvency, efficiency and market based ratios.
In addition to the ratio analysis, we will also calculate the intrinsic value of the stock using the price/revenue method. Important to note, ...

Introduction 3

Comparative Financial Performance Analysis of Pepsi and Coca Cola for the Last Two Years (2014 and 2015) through Ratios and their Interpretations 3
Analysis of Profitability Ratios 4
Gross Profit MarginW 4
Net Profit margin 5
Return on Assets 6
Analysis of Solvency Ratios 7
Current Ratio 8
Quick Ratio 9
Analysis of Capital Structure Ratios 10
Debt-to-Equity Ratio 11
Interest Coverage Ratio 12
Examination of Efficiency Ratios 14
Days Sales are Outstanding 14
Days in Inventory 15
Payables Period 16
Findings and Recommendations 17

References 20

Comparative Financial Performance Analysis of Pepsi and Coca Cola
Introduction
Because of their global ...

Introduction

In 2008, the entire world was rocked by the biggest financial crisis since the Great Depression. The crisis first affected the entire financial system of the United States before then quickly spread globally. The casualties of the crisis included the whole investment banking industry of the US. Other casualties were the US largest insurance company, largest mortgage lender, among other firms in the financial services sector. The US auto industry was severely hit leading to loss of jobs. The US unemployment rate increased by 4.9% points from the third quarter of 2007 to the third quarter of 2009. The ...

Company Overview 3

Three Year Horizontal Analysis of Johnson & Johnson Company (JNJ) from 2013 to 2015 3
Income Statement 3
Balance Sheet Analysis 6
Financial Performance Analysis of Johnson & Johnson Company for 2014 and 2015 8
Current Ratio 8
Quick Ratio 9
Cash Ratio 10
Findings from the Analysis of Johnson & Johnson Company and Recommendation for Improvement 11

References 13

Financial Performance Analysis of Johnson & Johnson Company through Horizontal and Ratios Analysis from 2013 to 2015
Company Overview
Johnson & Johnson Company, founded in 1886, is a publicly traded organization in the Medical Equipment and Pharmaceutical industry of the United States of America. The headquarter ...

Chapter 11

Discussion Questions 1 – 12

The corporations appoint investment bankers in order to sell and to distribute securities. The investment bankers have a sales network along with constant connection with the financial marketplace. In the case of corporations, they issue securities on an irregular basis while the investment bankers tend to do it regularly. The investment banker will provide their expertise on such securities by designing the right security, gaining a wide distribution, and obtaining a fair price for the securities.

Identify the primary market functions of investment bankers.

The investment bankers tend to establish new firms or find growing firms which can gain from the securities offerings. ...

Volkswagen AG

Primary activity of the company
Volkswagen AG is the second largest automobile producers in the world, headquartered in Wolfsburg, Germany. The Volkswagen group includes twelve brands: Volkswagen Commercial Vehicles, Volkswagen Passenger Cars, Ducati, SEAT, Audi, Bentley, SKODA, Porsche, Lamborghini, Bugatti, Man and Scania. The Group is the largest car manufacturer in Europe: 25, 1 % of all new cars, made in Western Europe, produced by Volkswagen. The company is operating 119 plants in 20 European countries and 11 countries in Asia, Africa and Americas, occupying approximately 13 % share in the global market of passenger cars. The production of the Group ...

International Business Machines

Problem 1:

These ratios judge short term payment ability of the entity. Generally two measures of Liquidity Ratios are used by analyst to adjudge the liquidity position of the company:
- Current Ratio
- Quick Ratio/Acid Test Ratio
1) Current Ratio: Calculated as ratio of Current Asset and Current liability, this liquidity ratio is considered to be true indicator of a firm’s liquidity. The average industry current ratio is 2:1.
- Current Ratio: Current Assets/ Current Liabilities( Robisnon, 2011, pg 142)
2) Quick Ratio: A more stringent measure of liquidty assessment, quick ratio is ...

Financial Analysis: Google Inc

Introduction:
In order to ascertain the real financial position of Google Inc, we will be conducting the ratio analysis of the company for the year 2011, 2012 and 2013. As part of this analysis, we will look into the liquidity, profitability, solvency and efficiency analysis of the company and the same is detailed below:
a)Liquidity Analysis:
Also known as Pure Balance Sheet Ratios, liquidity ratios indicate the short term solvency of the company, i.e. if the company will be able to honor its short term obligations. In other words, it indicates the current working capital position ...

About the paper

The paper is commissioned to analyze the industrial position of Qatar based Aamal Company using both qualitative and quantitative parameters. While the qualitative assessment will be based on SWOT analysis, quantitative assessment of the company will be performed using the tool of ratio analysis as part of which, we will be performing the analysis using raw financial figures for the current year and the comparing the outcome with industrial and index benchmark . Additionally, we will also perform the stock valuation of the company to access its suitability for the investment purpose.
The report will finally be culminated with a ...

Introduction

The technique of high-frequency trading has been around for years, but especially close attention and a new surge of interest in it arose after the sensational release in May 2010 of the book by Michael Lewis “Flash Boys”. In fact, it is hard to call high-frequency trading methodology a revolutionary or even new. Although now, talking about it, everyone remembers high-performance computers and automatic programs with elements of artificial intelligence, but if to leave these technological “tricks” and the terms out of the brackets, everything becomes much easier. Actually, we are dealing with a business model, when using a ...

Executive Summary

The paper analyzes the financial standing of Genus PLC using time-series and cross section analysis, and through intrinsic stock valuation. Our analysis revealed that during 2015, the company recorded an astounding profitability performance although its short-term liquidity was a concern of worry on account of the declining cash position and increasing receivables. On the other hand, the company is trading with significantly lower leverage relative to the industry average, and this trend will favor the company as it is generating higher profitability with minimal risk.
In addition to the fundamental analysis, we also calculated the intrinsic stock value of ...

About the paper

The paper is commissioned to conduct a comprehensive financial analysis of one of the leading retail based company in Australia, Woolworths Limited. As part of this analysis, we will be using the raw financial data for the past five (5) years and will run them through the microscope of financial ratios. In addition, we will also analyze the past year trend in the stock price of the company and will unfold the major events that caused changes in the stock price of the company. The report will finally be culminated with a concise yet overall outlook for the stock ...

Abstract

Shadow banks are broadly as nonbank financial institutions that engage maturity transformation (McCulley, 2007). The broad areas of shadow banking intermediation include: maturity transformation, credit risk transfer, liquidity and leverage. The shadow banking in China is composed of the following three distinct qualities. First is liquidity transformation, high leverage and credit transformation. The second outstanding feature is the limited regulation which does not spell out capital requirements, provisions for loan losses and the ratio of loan to customer deposits. The final characteristic is the existence of their interconnections with other institutions which makes them a source of systemic risks. (Yan ...

1. Capital

It is vital to increase the strengths of banks and hence their abilities to absorb economic stress and financial constrains. The global financial crunch was accelerated with the high vulnerability or susceptibility of the banking system and if this is to be avoided again, strong banking systems need be adopted.
Poor definition of capital, a lack of ability to build common banking system and generally the low quality of capital were the main causes the economic downturn.
With the increase in the capital quality, the banks are in a better position to absorb economic shocks on both a going concern and a ...

Company: Diageo Plc

Industry: Alcoholic Beverage Industry
Diageo Plc is a British, multinational alcoholic breweries manufacturer. The company is headquartered in London, United Kingdom and the primarily operations of the company are related to the manufacturing of alcoholic breweries which includes, wine, spirit and beer. With the market capitalization of $78 Billion, it is the eight largest company registered on the London Stock Exchange.

Diageo is also a proud owner of the leading brands in the alcohol industry as Smirnoff, Johny Walker and Guiness.

Stock Exchange Listing/ Stock Market Activity:
Diageo Plc is registered on London Stock Exchange under the ticker symbol of ‘’DGE’’. With the average volume of 622,398 shares, the company stock price is in the increasing trend. ...

- Introduction
Nectar Sweets Plc is a company with the main shop in Hong Kong. It is experiencing cash flow problems and is seeking an increase in the overdraft facility from the bank. Statements of the company reveal that its operations are profitable, but it is not efficient in collecting debt. The report identifies and analyses the company’s problems and recommends possible solutions. In addition, it uses financial ratios to assess the performance of the firm.
- Problems facing the company
- Nectar Sweets Plc has a problem in collection of its accounts receivables. The company takes a ...

Investment Analysis of Coca-Cola Co. and PepsiCo Inc

Investment Analysis of Coca-Cola Co. and PepsiCo Inc
1. Company Profiles – A Synopsis

PepsiCo Inc, an American multinational, is a food and beverage organization which has headquarters in New York, United States. The company has interests in the production, marketing and distribution of beverages, snack foods, and other products. This publicly traded company was formed in the year 1965 after Pepsi-Cola Company merged with Frito-Lay, Inc. Coca-Cola Company, also an American multinational, sells carbonated soft drink in every store having a headquarter in Atlanta, Georgia of United States. It was founded in 1886.

Product/Services

PepsiCo has a diverse beverage and food portfolio ...

Importance of liquidity ratios in short-term financial decision-making

Liquidity ratios are a source of information on the ability of the company to meet its short-term immediate obligations. Liquidity is a reflection of the company’s ability to meet its short-term obligations by the use of assets whose conversion to cash is an easy task. The three most common liquidity ratios include the current ratio, the quick ratio, and the networking ratio. The current ratio can be described as the ratio of current assets to the current liabilities. Current ratios are an indication of the ability of the company to satisfy its current liabilities with its current assets. When making ...

Introduction

Business cycle and monetary theory are great aspects studied in macroeconomics. Economists were concerned with the changing nature of macroeconomics and most of them tried to elucidate specifically what goes on and the reasons for the existence of economic cycles. Due to this, several schools of thought and theories were developed. However, each economist was trying to outdo each other and criticizing one another’s work was quite common. The classical school which perceived economics to be a science of wealth was highly criticized by John Keynes. This paper shall critically evaluate the Keynes’ criticism on the classical school of ...

Proposal for the Analysis of “Global Financial Crisis-2007”

During our lifetime we have seen many small and big recessions in different financial markets across the globe. The biggest of them all in last eighty years is definitely the Global Financial Crisis of 2007 which is also known as Subprime Financial Crisis. It being by far the most discussed economic topic of our times, lots of things have been said about why it happened and how it could have been averted. Still we are struggling to get out of the deep rooted impact it left upon the global economy.

The Global Financial Crisis did not just happen overnight. ...

Introduction to PepsiCo Incorporated

PepsiCo is an American multinational company having its origin in the United States. The company is a market leader in the global beverage industry. The biggest and worldwide competitor to PepsiCo is the Coca-Cola Company. PepsiCo serves the worldwide market and gain access to audience by mainly sponsoring sports events, players and teams.

Pro-Forma Financial Statements of PepsiCo Incorporated for 2016 (the next period)

This section is aimed at displaying the financial statements of PepsiCo for the next financial accounting period (2016) as well as the last statements for 2015. The pro-forma income statement and balance sheet are prepared by assuming a ten percent increase in sales revenue and cost ...

Causes of Great Depression in Europe

The Great Depression in Europe occurred during 1930s due to the economic depression that started in America in 1929. The depression was one of the biggest economic slowdown noticed by the Britain in 20th century. World trade was reduced almost by fifty percent, unemployment increased and industrial output were reduces significantly. The foundation of Great Depression started developing after World War I when various countries started manipulating their currencies and abandoned gold standard. Though various countries returned to gold standard, but it did not help in strengthening their economy or increase in spending. Britain also established gold standard in ...

Introduction

In this paper, we will be conducting financial analysis for the UK based supermarket chain, J Sainsbury PLC. The sole objective of this report will be to arrive at a conclusion related to the investment opportunity in the stock. Therefore, as part of the traditional analysis, we will be unearthing the financial trend using the tool of horizontal analysis and liquidity analysis for the period of past two years.

About the company

Founded in the year, 1869, J Sainsbury PLC is a UK based supermarket chain. By the end of 2014, the company operated 1304 supermarkets and convenience stores around the nation, making it ...

Introduction:

In this report, we will be analyzing the financial position of Apple Inc using the tool of ratio analysis where the following set of ratios will be discussed:
- Liquidity Ratios
- Profitability Ratios
- Asset Management Ratios
- Debt Management Ratios
- Market Value Ratios
As we all knows, Apple Inc is a globally recognized company headquartered in California. The company is known for its innovative products that primarily include, I-Phone, I-Pad, I-Pod and Macbook. We are sure that by the end of this report, we will be able to arrive at a rationale ...

Introduction:

In this report, we will analyze the financial position and attractiveness of Wal-Mart’s Stock to an average investor. For this purpose, we shall conduct the ratio analysis of the company for the period of 2012, 2013 and 2014, along with comparison to the industrial average. Important to note, as part of ratio analysis we will be using five ratio sets, namely:
- Liquidity Ratios
- Profitability Ratios
- Asset Management Ratios
- Solvency Ratios
- Market Ratios
We are sure that by the end of this report and with the help of ...

(Professor Name)

25th, November, 2013

Comparison and Financial Analysis of Starbucks Corporation and Dunkin Donuts
Introduction:
Our analysis of a company listed on US Stock Exchange is based on Starbucks Corporation, while for the purpose of comparison with the competitor within same industry, we shall be analyzing financial statements of Dunkin Donuts. Atlthough the valuation will be based on 1st November, 2013 but for ratio analysis we will be using 202 annual report of both the companies to facilitate comparison.

The concerned industry is of Speacility Eateries.

Starbucks Corporation is a leading marketer and retailer of coffee, having its outlets in 60 countries around the world. The stock of ...

RPC is a plastic manufacturing conglomerate domiciled in the United Kingdom. The origin of the group can be traced from the merger between five companies in the year 1991, followed by management buyouts of several related plastic manufacturing businesses within the region. The twenty years ending 2011 have been very significant for the group growth wise, which has seen the company make great strides in the growth of different facets of business defined by sales, profitability, as well as the market share of the products that are offered to the market. The company is headquartered in Northampton shire and currently ...

Financial analysis of the company for spring 2012 to provide an insight of the profitability of the company to prospective investors: Any company’s financial health can be determined by calculating some ratios which depict the significant features of the company such as profitability, stability and credibility in financial terms. The four set of ratios calculated for the purpose of this financial analysis is liquidity ratios and profitability.
Liquidity ratios: Liquidity ratios project the firm’s ability to pay its short term liabilities. Current ratio is a primary liquidity ratio that projects the company’s capability to pay its ...

This paper presents analysis of Woolies ltd financial statements. Company’s financial analysis is of essence since it will be of significance in determining the performance and financial position of the company. The human resource director is subsequently able to interpret the company’s performance with respect to the profitability level, earnings per share or control as well as the liquidity position of the company.
The paper therefore undertakes the analysis of Woolies ltd cash flow statement, balance sheet, and the analysis of income statement. Income statement tells the performance of the company throughout its financial period. The ...

Introduction

The success of a company depends on the company’s attention to the short-term decisions. Short-term decisions affect the management of current assets and current liabilities. The company’s liquidity position depends majorly on the level of current assets of the company. If a company is to survive in the business, it must have the ability of generating enough cash that meets its short-term (current) needs (Bhattacharya, 2004).

Working capital management is therefore an important factor in the success of a company, both in the short term and long term. The degree of solvency or liquidity depends on the extent to which ...

Internal Analysis of Encana

Internal Analysis of Encana

Introduction

The oil and gas industry in North America is currently experiencing challenges and transition stage. The increasing need for the environment-friendly and sustainable forms of energy is affecting the industry negatively as more governments and companies are encouraged to use energy with no or low carbon emission. More companies are now developing solar and wind energy and create vehicles that can rely on electricity rather than oil.
Such growing trend in the energy sector resulted to lower demand of oil and gas particularly in the North America. Many oil and gas producing countries and companies ...

Part A – Company’s Background 3

Part B – Comparative Financial Data of Last Three Years 3
Part C- Comparative Financial Performance Analysis from 2013 to 2015 5
Current Ratio 5
Inventory Turnover and Receivable Turnover 6
Total Debt Ratio 7
Net Profit Margin 8
Key Findings and Investment Decision – Conclusion 9

References 10

Comparison of Financial Performance between PepsiCo and Coca-Cola from 2013 to 2015
Part A – Company’s Background
This research aims to compare financial performance of PepsiCo and Coca-Cola Company from 2013 to 2015. These two companies are actually market leaders as well as largest competitors to one another in the global beverage industry. Both ...

Financial Analysis Project

Target Corporation is one of the largest American merchandise retailers. As of January 31, 2016, it operated 1,792 stores in the USA. It is also a component of the Standard & Poor’s 500 Index. The company earned a net income of $3,363 million in 2015 compared to a net loss of $1,636 in 2014 (Target, 2016).
Horizontal analysis involves comparing each item on the most recent statement with the related item on the earlier statement in terms of amount and percent of increase or decrease (Warren, Reeve, & Duchac, 2009, p. 585).

Horizontal Analysis

Horizontal analysis of Target’s ...

Essay Question: How different investor types impacts Market Efficiency

Individual investors
When individuals talk regarding marketing efficiency, they simply refer to the degree to which the aggregate decisions of all participants in financial markets are accurately reflecting the value of companies and their shares at any given time (Allen and Gale, 2000, pp. 236-255). Therefore, it requires the determination of the intrinsic value of the company while providing a constant update to valuations because new information is becoming familiar. Consequently, the more a financial market becomes accurate, it will be able to price securities and the more efficient it is said to be. Thus the principle of the ...

Introduction

This paper explores the costing and pricing methods applicable to firms in the tourism and travel sector using Allegiant Travel Company as an example. Allegiant Travel Company is an American company providing leisure travel products and services to under-served cities in the US. It provides air transport, air transport-related products, travel protection products, hotel rooms and other third party travel products. The paper also analyses the financial statements to assess its financial state.

Costing methods

Several costing methods can be applied in the tourism industry depending on the nature of the assignment and the operations of the organization. Applicable costing methods ...

Global Financial Crisis in the US

Introduction
It was hard for the economists, professional analysts and policymakers among other players in the financial industry to foresee the crisis in the US mortgage lending industry in 2007 that resulted in the world's worst economic recession in two years' time (Sher and Iyanatul 2010). Initially, there was a housing bubble characterized by high house prices, low-interest rates, more support for subprime mortgage and increased speculation by the buyers (Acharya and Schnabl 2010). Eventually, there were decline of house market prices, increased lending rates and increased default and foreclosures by the mortgagors (John 2009). Notably, by mid-2008 the ...

The selected company is Coca-Cola. The company is in the beverage-carbonated soft drink industry. The industry is highly concentrated with very few players. The key competitor of Coca Cola is PepsiCo. Six financial ratios were selected to conduct an analysis of the financial performance and position of Coca-Cola. The ratios are current ratio, quick ratio, operating profit margin, inventory turnover ratio, price earnings ratio and debt-equity ratio.

Current ratio

Current assets/ current liabilities
33,395/ 26,930 = 1.24
This means that the company has 1.24 dollars of current assets for every dollar of current liabilities. Therefore, it can comfortably settle all ...

This paper discusses the factors that lead to shifts in the demand and the supply curve for bonds. In the first part, the paper discusses the factors that cause a shift in the demand curve for bonds before looking into the factors that cause a shift in the supply curve for bonds. The demand curve for bonds will shift due to changes in wealth, expected relative return, Expected interest rate, inflation expectations, relative liquidity, and relative risk (Wright and Quadrini, 2016).

Increases in wealth will increase the demand for bonds causing the demand curve to shift

outward to the right, while decreases in wealth will cause the demand curve to shift inwards to the ...

About the paper

The paper is commissioned to discuss the financial standing of Google Inc. using the statement of financial position for the year 2012 and 2013. To come up with a prudent analysis, we will be using common-size analysis and some balance sheet ratios to evaluate the financial standing of the company during the year.

Balance Sheet Analysis

Referring to the common-size balance sheet attached in the appendix section, we can see that the current asset base of the company surged by 20.5% amidst a proportionate increase in all of the components of the current asset, except inventory. Most notably, the cash position increased ...

Financial Analysis: Lincoln Electric Company

In this paper, we will analyze the financial performance of the company by putting the past two years financial under the microscope of ratio analysis. Below is the summary of all the ratios that we calculated for the company, followed by an extensive discussion as how the company performed over the year:

Analysis

We initiated the ratio analysis through liquidity analysis of the company and found that over the year, the liquidity position of the company has witnessed a marginal setback with both current ratio and acid ratio experiencing a declining trend. Beginning with the current ratio, the multiple plummeted from 2.47 ...

28th Februar, 2014

Financial Analysis
Answer 1)
Liquidity Analysis:
These ratios are used to judge short term solvency of a company i.e if it can honr its short term obligations. Generally two liquidity ratios are calculated:
i) Current Ratios = Current Assets/ Current Liabilities
ii) Quick Ratios= Current Assets- Inventory/ Current Liabilities
ii) Solvency Ratio:
These ratios are used to adjudge the long term solvency of the company i.e if the company can honor its long term obligations.
i) Debt to Equity Ratio: Debt/ Equity
ii) Interest Coverage Ratio: Operating Income/ Interest Expense
iii) Profitability Ratio:
...

Financial Analysis: Caterpillar Inc

About the paper:
This paper is being commenced with the objective of conducting the financial analysis of Caterpillar Inc. The company which is one of the largest manufacturers of agricultural implements, trades on NYSE under the ticker symbol of ‘CAT’. For the purpose of conducting the financial analysis, we have divided the paper in two parts:

Part 1: This will include common-size analysis of the company’s financial statement.

- Income Statement(Horizontal Analysis): Refer to excel spreadsheet
- Balance Sheet(Vertical Analysis): Refer to excel spreadsheet

Part 2: This will include extensive ratio analysis of the financial statements under the following sections:

- Liquidity Ratios
- Profitability Ratios
- Solvency Ratios
- Efficiency Ratios
- Valuation Ratios
i)Liquidity ...

A review of 'Trends in the Funding and Lending Behaviour of Australian Banks', Reserve Bank of Australia, Research Discussion Paper, RDP 2013-15, December 2013.

In their article 'Trends in the Funding and Lending Behaviour of Australian Banks', Reserve Bank of Australia, Research Discussion Paper, RDP 2013-15, December 2013; Stewart, C., Robertson, B. and A. Heath, discusses the lending and funding behavior of Australian banks. They acknowledge banks as the foremost intermediaries between the numerous agencies of the economy. In a specific term, banks allow for transactions between the stake holders in the economy of Australia by either offering loans and ...

The European System of Central Bank (ESCB) is governed by European Central Bank (ECB) and the National Central Banks (NCB) of European Union Member States. European Central Bank is the Central Bank of Europe Zone. ESCB is governed by the governing council and other decision making bodies of ECB. The governing Council is responsible for making monetary decisions and the Executive Board is empowered to implement monetary policy as per the framework of decisions laid by the Governing Council. Just like any other Central Bank, the core function of ECB includes maintain price stability of the local currency in ...

Part II

Whole foods market has shown a gradual improvement in its performance in the market. From the analysis of the two previous years income statement, 2011 and 2010, there is an increase of total sales from $ 9.01 billion dollars in the year 2010 to 10.11 $ billion dollars in the year 2011. This is contributed by the increase in the number of stores opened at the end of these two fiscal years. This has lead to an increase in the firms' market share in dealing with food products. The diversification of its operations center has made the firm to enjoy the economies ...

INTRODUCTION

Tantalizers Plc is a leading Fast Food company established in May 1997 with a promise to deliver full value for money to an increasingly discerning target audience. The company pioneered the integration of African menu into fast food operations.
In order to evaluate how tantalizers’ plc has improved in its financial performance in terms of profitability, efficiency and stability, its financial statement in 2008 and 2009 would be analyzed and interpreted using some basic financial ratios. Profitability, efficiency and financial risk ratios will be used to evaluate the company’s performance in 2008 and 2009 respectively.

Financial Ratios

Turnover Growth

Net profit ...

Improving the Operating Strategy of Marriott

Improving the Operating Strategy of Marriott
The purpose of the report is to develop a recommendation for improving a company’s current strategy in order to remain sustainable in a highly competitive economic environment. The recommendation will be based on an analysis of both the external and internal factors that affects the company. This includes both qualitative and quantitative factors since the report is segregated into (1) environmental scan and risk analysis, (2) ratio analysis, (3) financial statement analysis, (4) weighted average cost of capital, and a (5) strategy development. The company chosen to be analyzed is Marriott International, ...

Financial Statement Analysis

Introduction and overview:
The Apple Inc. is one of the leading companies in the production of smart phones and other latest hardware appliances. The main products of the Apple Inc. are Iphones, laptops, tablets and other small appliances. The Apple Inc. is listed on the major stock exchanges and they have a number of stores all over the world that are providing the best customer relation and increasing the sales. The Apple Inc. is performing business in the technology field and their main competitors are Samsung, HTC, Intel and Motorola. ("AAPL Income Statement | Balance Sheet | Cash Flow | Apple Inc. ...

Executive Summary

The report comprises of two main tasks that are financial ratio analysis and distress analysis to determine and evaluate the financial performance of HSBC. The case study is prepared to analyze the financial conditions of HSBC. HSBC Bank Plc. is one of the largest financial services providers in the world. HSBC operates in Finance and Insurance industry that is highly competitive in the global market. The decline in values of current ratio, quick ratio, and cash ratio reveals that the company did not succeed in maintaining stability in its financial position, but the decrease of 0.02 and 0.01 is ...

Introduction

Amazon, Inc. has shown strong performance amidst the international and local competitors. The profit margins have bettered with the sales in 2015 as compared to 2014. But, along with profits, liquidity and capital structure also plays a critical role in determining the sustenance of the performance. To evaluate the same, the Liquidity and Gearing Ratios have been evaluated for the financial years 2014-15 and 2015-16 as shown in the below table:

Ratio Analysis:

Liquidity ratios – These indicate the short term capacity of the organization to readily convert its current assets to cash in order to cover the short term liabilities. The ...

Sources of capital

The sources of funds for the company are divided into two categories means that the company is going to collect funds from two sources. These two sources of funds include debt and equity. The company is going to receive total long term debt of $13,000 from the financial institutions. Apart from debt, the company is going to receive capital from the equity holders as the company is going to issue 100 preferred stocks and 100 common stocks at the beginning of the business. This long term debt and capital from equity will be the major sources of the ...