Liquidity Course Works Samples For Students

Private placement is the sale of a company’s securities to a few, select investors as a means of raising the capital. The investors may include insurance companies, banks, pension funds, and mutual funds. Such a placement does not require registration with the Securities and Exchange Commission. This work appraises the market performance of a group of companies that announced their intention to sell private placement shares. The market considered herein is the NASDAQ Global Market. For this market, two companies (issuers) are considered -- NeurogesX, Inc. and Solar Capital Ltd. The information herein is current and is sourced from various sites including the ...

In this perspective, current assets are assets within the organization that are convertible to cash within a period of 12 months. They are mostly renowned for their high liquidity. Current assets are included in the balance sheet after the noncurrent assets. They are important in measuring the liquidity of an organization. When compared to current liabilities, they show the liquidity position of the organization. Therefore, current assets play an important role in the organization by helping to determine its cash flows in a given period of time. Every organization requires current assets in its routine activities. The performance of the organization ...

Why do firms feel that liquidity is desirable even though it may mean that the firm does not utilize the investment capability of cash?

CASH IS KING! This was highlighted in the article and has become the popular slogan at the peak of the 2008 financial crisis. Indeed, this phenomenon is more apparent in bad times than in good times when businesses and households are somewhat oblivious of their accumulating debt and complacent which entail potential liquidity risks. If for anything, a financial meltdown reminds everyone again of the importance of being liquid.
So why is liquidity important? In ...

Nestle Sdn.Bhd is the Malaysian district of the Nestle Corporation, originally set up in Switzerland, as a multinational nutrition and beverage company with its headquarters in Vevey. It truly possesses the leading points at the world food production and distribution market, as its market capitalization exceeds the number of 200 million USD. The 29 brands of the company gained their popularity through all over the world, varying from casual food and drink products, to even medical nutrition.

Nestle corporation represented its production on the Malaysian borders more than a hundred years ago, as the first company in Malaysia appeared in 1912 ...

Following is the list of ten internal controls that the organization should have over the collection of the accounts receivables.

- Accounts receivable collections should be processed on a daily basis
- Establishment of the proper information system by the organization
- Proper segregation of the duties
- Establishment of proper authority level
- Constant review of the balances due from the customers so that proper check and balances is to be maintained by the organization
- Reminder letters should be mailed to the customers after a reasonable interval of time
- Money received in cash form from the clients should be deposited in banks on time
- Proper recording of the transactions by ...

The Horizontal Analysis

In the horizontal analysis of the company, one considers the various line items in the income statements and the balance sheet with similar items in the previous years. Looking at the year 2008, the company did not perform well. In terms of sales, there was a decrease in the sales compared to the year 2007. There was a decrease of $ 897,000 which is 15% of the sales revenue.
As a result of the low sales, the company suffered a loss in the gross profit. The profit reduced from $1.6M to $1.4M. When analysing the expenses, the website creation and maintenance is a ...

Ratio analysis is a useful tool for the purpose of financial analysis as it facilitates summarization of a large quantitative data and produces a meaningful conclusion for every user and the same is discussed below:

- Owners: Ratios are used by the owners of the company so as to know about their liquidity, efficiency and profitability of their entity. In other words, ratios act as profile evaluators on the basis of which owners establish benchmarks for the future performance of the company.

- Financial managers: Finance managers use the ratios to evaluate the financial policies of the company and ensure that all ...

Introduction

Every business tries to enhance its productivity from different standpoints and angle and every standpoint deems extremely important from the viewpoint of an organization in total. Analysts analyze an organization from different angles and with the help of different methods and tools. All of these tools are essential to analyze and assess the level of financial based initiation from different angles in total.

Among number of methods and tools to analyze the financial based competitiveness of an organization, the name of different amount of ratios is one of them. Different sorts of ratios are profitability ratios, liquidity ratio, efficiency ...

- Introduction

This paper is a financial analysis of General Electric (GE) Company. GE is a multinational conglomerate company incorporated in the New York, United States. The four main segments of the company include; capital finance, technology, consumer & industrial, and energy. There are many products and services the company offers but within the named categories. GE is ranked among the top ten largest firms in the US in terms of gross revenue. The 2011 annual reports of GE reported a total asset base of $ 717,242 million and $ 66,875 million in revenue.

GE has been selected as a point because of the diversity ...

- Introduction

IBM is a world leader company in information technology and stands as the largest revenue generating Company in its field. In the past 50 years, IBM has earned a place for itself as the pioneer in information technology developments and innovation. The Company manufactures products ranging from hardware to software for its impressive clientele around the world. These products are designed for another range of storage products, line of business servers, customized microchips including the application software. In addition to manufacturing, IBM also serves as a consulting and outsourcing agent. The new information age is quite challenging to compete ...

About the report

The report is based on analyzing the financial performance and accounting policies for Starbucks Corporation. While the financial performance of the company will be evaluated using the tool of ratio analysis for the period of two years, the accounting policies of the company will be discussed using the latest annual report.

Accounting for assets, liabilities and equity

Note 1 of the financial statements discusses the procedures through which the company accounts for its assets, liabilities and equity. As for accounting assets and liabilities of the company, the company uses the provisions of Fair Value Accounting, under which fair value of the assets and the liabilities ...

Question 1

Ratios calculations for Walgreens and Rite Aid Corporation of fiscal year 2001 and 2000
LIQUIDITY RATIOS
Current ratio = Current assets ÷ Current liabilities
Quick ratio = (current Assets-Inventory) / current liabilities

ACTIVITY RATIOS

Inventory Turnover = sales/inventory
Accounts receivables Turnover = sales/ accounts receivables
Asset Turnover = Total sales/ Total Assets

LEVERAGE RATIOS

Debt to Equity Ratio = Total Debt/ Total Equity
Long-term Debt to Equity Ratio = Long-term debt/equity
Debt Ratio =Total Debt/ Total Assets

PROFITABILITY RATIOS

Gross profit margin = {sales –COGS} / sales
Operating profit margin = EBIT/ sales
Net profit margin = Net Profit After Taxes/ sales
Return on ...

QUESTION 1:

INTRODUCTION:
Pet.com is an e-business, founded by two graduates and Ms. Solberg, with a total equity capital of $1.5 million. Despite greater losses the company has tolerated, investors are eager to invest in the shares. Seeing the excitement, company decided to go public with the sale of 500,000 shares in initial public offering by the three existing shareholders, along with the sale of additional 750,000 shares by the company so as to provide funds for expansion. Further, the underwriters suggested placing price at $18 a share instead of $24, but financial manager was worried about the fact that ...

Strengths identified in the SWOT outline personal qualities compatible with recommended characteristics associated with successful financial risk analyst consultants:

- Adequate Distance – an expert risk analyst is able to merge disparate information, including factors that may be causing immediate conflict with a client’s strategic goals. As an external party hired to provide services and advisory, a consultant’s representation of an organization on a project can often clear the way for a company seeking investment and other contribution.
- Closer – bring the project to completion so that the client may proceed with a strategy according to schedule is fundamental to meeting practice criteria.
- Communicator – continuous and precise communications are priority for most organizations working with a financial ...

Royal Dutch Shell PLC commonly known as the shell is second largest energy company in the world whose registered office is in London. It is oil and Gas Company operating in various parts of the world; to stay relevant to climatic and environmental changes it engages in both renewable and non renewable energy. In addition, it is a vertically integrated oil company which engages in all oil activities from exploration to refining and marketing. Apart from its core activities, it has entered into partnership with various international organizations to preserve the environment. The company shares are listed in London stock ...

Financial risk of an enterprise can be defined as the probability of adverse financial consequences in the form of loss of income and capital under uncertainty conditions for its financial activity. Financial risks have a great variety and for the implementation of effective management are classified by several main features that will be considered below.
Financial risks arises in the process of enterprise relationships with financial institutions (banks, financial, investment, insurance companies, stock exchanges and others). Causes of the financial risk are inflation factors, the growth of bank interest rates, reduction of the value of securities and others.

Financial risks are roughly divided into two types:

1) ...

Introduction

Gap analysis is a method employed in asset and liability management that can be used to evaluate the interest rate of the risks or the liquidity risk. These two terms have a minor distinction and therefore people distinguish between the interest rate and liquidity gap. Gap analysis was initially widely used in the late 80s in management of interest rate risk. The method corresponded with the duration analysis.

Answer one

Maturity gap of the bank is considered to be the rate of risk-sensitive assets and liabilities. The market values at each point at maturity for both assets and liabilities are evaluated. After which ...

Financial statements of an organization provide potential investors with a more detailed insight about the organization as opposed to the casual glimpses of the organization’s stock market prices. For an investor who is interested in investing in a particular organizations stock, and has the financial records of the organization in question at his disposal, then the first five areas to review before investing would be as follows:

- Liquidity Position: The balance sheet presents a broader overview of the organization’s financial position. From balance sheet data, it is possible to calculate the current ratio which reveals the general liquidity of ...

Part A

When evaluating healthcare insurance options with a view to selecting one, it is imperative to consider the cost of the insurance. This describes the amount of premium that I will be expected to pay, as well as the payment plan. This would enable me to choose the healthcare option that I can finance adequately, without jeopardizing the coverage of health risks (United Healthcare, 2013). After determining the cost of each of the available insurance plans, the second step would entail understanding the scope of coverage of each healthcare insurance plan. This would enable me to understand the health risks that ...

FOREWARD

This reports aims at shedding light in the best strategy for Ahold to adopt in identify the best target company to take over its aims to expand its food retailing services.
In this report the best comparison that will lead to aid in best decision making is by use of ratios since the business are reporting in different currencies and since the use of exchange rate would be biased due to volatility of the exchange rates overtime and thus such results would be quite unreliable and might lead to wrong decision making which would adversely affect the predator ...

In small economies such as Ireland, the traded sector is normally the leading sector for any economic development. In any bid to resurrect the economy from the depression which we have recently experienced, all reforms are aimed to surge the private sector so that the population can be able sustain itself.

The government of Ireland in their efforts to resurrect the economy has been working with the IMF and the EU in making the progress on the European policy reforms including the banking union which is very critical to the European and global confidence. The government negotiated with the ...

The interconnectivity between the world’s largest stock markets is based on the world’s interdependent global economy. No longer does one country exist without interaction with other countries. No longer are countries isolated from each other. Instead, countries rely on each other for everything from raw materials to the production of goods and services. This interdependence is reflected in the stock market and other facets of counties economic systems.

I believe that Japan has the most influence on the United States’ stock market. The correlation between Japan and the United States’ high market movements is high at most ...

Abnormal returns refers to the excess returns that are generated by an investment over and above the expected return. Abnormal returns are positive if the actual returns are higher than the expected and negative if the actual returns are lower than the expected returns. This section seeks to compare the pre merger and post merger abnormal returns of the Access Bank of Nigeria. It also seeks to analyze how abnormal returns relate to mergers and acquisition.

In July 2004, the Central Bank of Nigeria (CBN) announced a new bank policy on the minimum paid-up capital requirement of banks in Nigeria. ...

- Put the following assets in order of liquidity: accounts receivable, inventory, cash, and marketable securities.

Current assets which include cash and other assets that could easily be converted into cash within the operating cycle of a business are usually listed in order of liquidity (Keown 4). All assets have the ability to generate some cash in some way but other assets are more liquid than others. The above mentioned assets would be listed in the following order:

- Cash- No other asset is more liquid than cash. Cash is how a business meets its obligations which range from ...

Richards (2013, p. 1) first sets out to define the terms to gain a better understanding of the concepts. “Debt” is defined as “borrowing money from an external source with the promise to return the principal, in addition to an agreed upon rate of interest.” Though the terms here are often understood in the negative light, startups, or small companies just beginning to operate, often use debt financing to fund their operations. In fact, even companies with the most robust balance sheets will often times reflect some amount of debt within. In financing terminology, debt can also be ...

- Market and Global Representation of Bupa

Bupa provides several health solutions including but not limited to; health insurance and other health funding products, primary care centres and hospitals, home healthcare, chronic disease management, workplace health services and care services which comprises of nursing homes, retirement villages and resident homes. Bupa has approximately 12 million customers spread across over 190 countries in the world as at 2012. The business of Bupa is divided into five major market units; United Kingdom, International PMI, international development market, Spain and Latin America domestic, and Australia and new Zealand. In the United Kingdom Bupa manages Bupa Health and Wellbeing, Bupa ...

- Use of ratios in performance evaluation

Ratios provide an evaluation platform for companies. Through calculation of ratios, firms have two to three options for evaluation. The options involve a set of conditions that make the use of ratios possible. This is because ratios only play a comparison role and cannot be used in isolation. They have to be applied together with a set of other ratios to make comparison hence deduce information that enables performance evaluation.

The first option in using ratios involves the application of ratios together with industrial ratios of the firm’s industry. Often, the industry in which the firm operates in have industrial ratios. ...

Question 1

Investment is an undertaking with an expected return in a given period of time. Investors focus on the value of return before making an investment decision. The investment value is subject to some elements which investors are concerned with their investments. These variables are as follows:

The expected cash flow of investment.

The investment cash flow can be used to evaluate the investment viability through use discounting techniques such as Net Present Value, Internal Rate of Return and Profitability Index. When the initial project outlay is less than the present value of the investment cash flows, then the project is viable using NPV technique. The firm’ ...

Introduction

Costco, the third largest retailer chain in the U.S. and the seventh largest retailer in the world, has significantly grown in the last ten years, a critical period disrupted by the great recession, e-commerce revolution, and global competition. Although a big number of retailing enterprises failed to survive the difficult challenges of the decade, Costco demonstrated an outstanding revenue growth performance over its key competitors – Wal-mart (includes Sam’s Club), BJ’s, Target, Sears, and JC Penney. However, based on an analysis of the 10-year financials of Costco and its key competitors, the profit performance of Costco has not ...

Introduction

Talent Management, the process of identifying, attracting, acquiring, retaining and compensating the human capital, has been undergoing a series of transitions over the years. This is due to the introduction of managerial technology such as the SAAS (Software as a Service) as well as the emerging trends in the HRM (Human Resource Management) that has steadily evolved from the manual paper work to a more unified automated method Burkely (2009).

The Talent Management has basically undergone a four-phase evolution; each stage being an improved state of its previous as they tend towards the forth coming future. The first stage in this chain of ...

Questions

Investor characteristics that are of importance include family responsibilities and variables, state of income and income stability, investor’s experience and age, net worth of the investor and the investor’s attitude towards risk. Family responsibilities and the investor’s net worth limit the extent of risk that the investor will be able to handle. An unmarried investor may risk more than an investor that has a family to provide. Having a high and stable income will allow the investors to be involved in high dividend stocks or stocks with high appreciation value of capital. The level of risk expected will ...

The shadow banking system, also referred to as the shadow financial system, has been informally described as the unregulated financial activities conducted by regulated institutions. They refer to the financial intermediaries, which are involved in the facilitation of the creation of credit across the global financial system. The members of the shadow banking systems are not subject to regulatory oversight. It also refers to the network of financial institutions, which are comprised of non-depository banks, for example structured investment vehicle, investment banks, hedge funds, conduits, money market funds, and non-bank financial institutions (Batchvarov, 2013, p. 348). Shadow banking institutions ...

Question One

Financial statements can be viewed from three perspectives; shareholders, creditors and managers. To begin with, a company’s management is the largest users of its financial statements. It primarily relies on financial statements such as the statement of financial position, statement of income and cash flow statements to determine the effectiveness of all decisions it makes in the course of running the company. The owners of any company elect managers and directors to manage all the funds they invest into the company. As a result, the management is fully answerable to the shareholders and must deliver periodic reports detailing the effectiveness ...

The Structure of the U.S. Banking System

Introduction

During the recent global financial crisis, critics have posed the question: does the repeal of Glass-Steagall have a positive or negative effect on the banking industry? Review of the structure of the U.S. banking system has culminated in some consensus that the U.S. government should bring back the Glass-Steagall Act. This is consistent with reporting by the FDIC (Federal Deposit Insurance Corporation), that more than one hundred twenty banking institutions have failed between 2007 and 2009, and this was largely in part due to high risk investments (i.e. mortgage backed securities).

First enacted ...

Abstract

Financial statements suffice for purposes of communication of financial and non-financial information to end consumers. These consumers in one way or another use the information in the decision making situations they are confronted with. Some of the basic financial statements include; the statement of income, the statement of financial position, the statement of cashflow and the statement of changes in equity and reserves. On the other hand, consumers of financial statements can be divided into two broad groups; internal consumers and external consumers. Internal consumers include managers and employees while external consumers are creditors, investors and government regulatory bodies. ...

Chart of accounts refers to list of accounts used by businesses and organizations to identify the various class of items for which money is spent or received,its mainly used to organize finances of a given business entity and to segregate revenues and expenditures,assets and liabilities in order to give stakeholders and interested parties a better understanding of financial health as well as assisting investors in decision making.In chart accounts each nominal ledger account is unique to facilitate ease of identification,it consists of profit and loss statement which basically indicates the performance of a business entity in regards to a given ...

Executive summary

Royal Dutch Shell PLC commonly known as the shell is second largest energy company in the world whose registered office is in London. It is oil and Gas Company operating in various parts of the world; to stay relevant to climatic and environmental changes it engages in both renewable and non renewable energy. In addition, it is a vertically integrated oil company which engages in all oil activities from exploration to refining and marketing. Apart from its core activities, it has entered into partnership with various international organizations to preserve the environment. The company shares are listed in London stock ...

Question 1

Management planning is a process of identifying, classifying and analyzing, implementing and reviewing the set objectives and goals of the organization in a given period of time. Planning is a continuous process with its achievements obtained after a specified period of time has elapsed. Management planning is concerned with the future causes of actions by examining causes as well as effects of current decisions made to the future plans. Managers plan in order to take advantage of opportunities and strengths available in achieving their management goals as their organizational function. Management planning is a systematic process that involves predetermined steps that give the structure ...

Introduction

The IFRS are accounting standards, rules and principles that were introduced by an independent organization in the United Kingdom, known as the International Accountants Standards Board. The institution puts forward that the standards would better serve public companies worldwide than the local standards in the country due to the aspect of comparability, transparency and economic growth. There are several countries that have adopted the IFRS over the recent years. The transition to IFRS for the companies in these countries has considerable costs. There are technical and training costs that are incurred that may cause several companies to be cautious ...

Company Description

Tottenham Hotspur Plc is engaged in the operation of a professional football club in England together with related commercial activities. The Company has two segments: football and property. In addition, the Company continues to acquire numerous properties with a view to a new stadium development.

The sponsors of the club include Autonomy, Investec, Puma, Thomas Cook Sport, Sporting bet, Carlsberg, TNT, EA Sports and Glyn Hopkin. The Company's Tottenham Tribute Trust is an organisation that reaches out to members of the Spurs family who are fighting hard times either financially, medically or both. The clubs patron includes Chigwell Construction (London) Ltd is a ...

ANALYSIS TOOLS

Owners of businesses are always looking for the best ways to make their business decisions. Accounting information is one of the tools that can be of great help to business managers in making decisions concerning the operations of the business (Bragg, 2011). In accounting, analysis refers to the assessment of the profitability, viability and stability of a business. These assessments are carried out by professionals in the accounting arm of the business; they prepare reports using ratios that make use of the information acquired from the financial statements and other reports of the company. These are then presented to the ...