Solvency Reports Samples For Students

Abstract

This paper seeks to demonstrate the analytical process of determining insurance metrics by evaluating the effects or risks of location (country), type of industry and number of years on key financial metrics. This paper uses the Analysis of Variance approach to determine the effects of the above-mentioned variables on key financial metrics and identifies where these variables have an impact and where they do not. For simplicity, certain assumptions have been taken. These include the exclusion of the possible effect of sampling errors and the effects of other variables that have not been identified. In doing so, this paper ...

Abstract

The memo is written with the purpose of discussing the financial standing of Atwood Oceanics, who has submitted an application for raising £5 million as a line of credit with the purpose of smoothing the variation in the cash flows of the company. We performed the financial analysis using the tool of financial ratios, as part of which, profitability and solvency ratios for the year 2014 were calculated. In addition, each ratio multiple was compared with the industry average and the assessment benchmark set by the bank.
Our analysis indicated that the company is in a strong profitability and ...

Financial Analysis: United Health Inc.

Financial Ratios
Ratios are important tool of financial analysis that are primarily used by the analyst so as to know the pas trend in the financial performance of the company and also to unearth the real time financial position. However, analysts never base their decisions on just one set of ratios for conducting the financial analysis of the company, rather the following set of ratios is commonly used by them:
- Liquidity Ratios
- Profitability Ratios
- Solvency Ratios
- Efficiency Ratios

Ratio Analysis: United Health Care Inc.

In this section, we will conduct the financial analysis of the company ...

About the paper

The paper is commissioned to conduct financial analysis of UK based retailer, Morrisons PLC. As part of this analysis, we will be using the raw financial figures for the year 2014 and 2015, and will take the assistance of ratio analysis to unearth the financial trend in the company. In addition, we will also calculate the intrinsic value of the stock using the dividend discount model, and will then culminate the paper with a final conclusion on the financial standing and stock valuation of the company.

About the company

Founded in the year 1899, Morrisons Supermarket is a UK based food retailer. ...

Avon financial analysis

Profitability analysis
Avon’s return on assets was -7.07 for the year ended December 31st, 2014 indicating that it suffered a net loss of $0.0707 for every dollar of total assets used during the period. The negative sign shows that the company’s operations were not profitable (Berry, 2011). ROA was -0.5757% in 2012 and -0.8687% in 2014. This trend shows that the firm’s return on assets declined in both 2013 and 2014 implying a decline in Avon’s profitability.
Its return on equity was -134.1% in the year 2014 meaning that it earned a loss of $1.34 ...

Internal analysis of Enbridge Inc.

Introduction
Enbridge Inc. a distribution and transportation of energy company operating in the United States and Canada. The company is divided into five segments to facilitate its operations and achieve its long-term corporate objectives. The sections include Liquids Pipelines; Gas Distribution; Sponsored Investments and Corporate and Gas Pipelines, Processing and Energy Services (Finance.yahoo.com, 2016). The company operates a common carrier through the Liquids Pipelines segment by contrasting natural gas liquids, refined products, and crude oil pipelines as well as terminals. The Gas Distribution Segment is a natural gas utility serving industrial, commercial and residential customers in Quebec, New York, ...

Executive Summary

The report unearths the past five year financial performance of Walmart Inc. using the tool of ratio analysis. Our analysis indicated that over the years, the liquidity position of the company had been fairly stable and witnessed a surge during the latest year. However, the result were not appreciable when compared to the industrial averages. In terms of profitability and solvency, Walmart have shown promising trend with appreciable run both in comparison with the industry and at intra-company levels. As for the efficiency and market ratios, the trend again provided a mixed review, where miserable inventory turnover were offset ...

Intel Corporation

In this paper, I use the annual report for Intel Corporation for the year ended 31st December, 2014 to answer the said questions.

Relevant information revealed by the income statement

The income statement for Intel gives valuable information on the total revenue for the company in the last three years. Total revenue is important since it directly determines the net profit and the profitability of the company. In the year ended December 2014, Intel total revenue was $55,870 million. In 2013, the company’s total revenue was $52,708 million while in 2012; the figure was $53,341 million. This information is important in determining ...

Ratio Analysis

Introduction
The ratio analysis helps in understanding the financial position and performance of the company in context of its industry and competitors. Over the last few years, the competition in the vehicle or automotive industry has been increasing that have resulted in fluctuations in their financial performances. BMW is one of the oldest company in the automotive industry have successfully developed itself over the period of time and completed 100th years with the beginning of 2016 (BMW, 2014). On the other hand, Volkswagen is another one of the leading automotive company in the global industry. Both of these companies ...

Introduction

Kindred Healthcare Inc. is a company that provides healthcare services through its transitional care hospitals, rehabilitation hospitals and assisted living facilities, among other healthcare services across the United States. This paper gives a detailed financial and operating analysis of the company to assess its liquidity, profitability, operating efficiency, as well as solvency.
1. RATIO ANALSYS
a) Liquidity ratios
The current ratio of Kindred Healthcare for the year 2013 was 1.510 implying that it had adequate current assets to repay its current liabilities. Although this value is less that the ideal 2:1, the organization’s liquidity is strong. The ratio ...

Introduction

Business expansion needs careful planning. The decision for one to extend his or her business must in fact come from thoughtful consideration of a number of factors including the logistical, financial, and even emotional readiness. As a rule of thumb, one should expand his or her business when untapped opportunities are present so as to benefit the business enterprise. Softly Pty Ltd is essentially an established business since it has been in operation for fifteen years. This report describes what the management of Softly Sofas Pty Ltd needs to consider for them to be successful in their expansion goal.

Possible sources of finance

One of ...

COMPANY PROFILES

Greene King
Greene King Plc. is a UK pub retailer and brewer that brews, markets and sells beer. It has three operating segments; Retail, Pub Partners, and Brewing & Brands. It also operates restaurants and hotels. The company had about 1909 franchised pubs, hotels, and restaurants as of May 2015. It was founded in 1799 and has its headquarters in Bury St Edmunds.

Swot analysis of Greene King

Strengths:
Its strength lies in the high quality of products. It has sustained the high quality of its products.

The company also has strong local roots that have contributed to customer loyalty.

It also has a strong distribution and sales network.
Weaknesses:
Over-reliance on the UK market.
High costs of ...

Solvency Ratios:

These ratios indicate the long term solvency of the company, i.e., if the company will be able to honor its long term obligation. Furthermore, it also helps in understanding the capital structure of the company. Below discussed are the solvency ratios of Debenhams Inc:
i) Debt to Equity: Debt/ Equity
(Debenhams, 2013)
ii) Interest Coverage Ratio: Operating Earnings/ Interest Expense
iii) Debt to Capital Employed Ratio: Debt/ Capital Employed (Mckeith, Collins, 2013)
*Debt= Total Debt
*Capital Employed: Total Assets- Current Liabilities

Analysis:

The above analysis of the company using Solvency Ratios indicates that, over a year, ...

Financial Institution Supervision: Insurance Companies

Introduction
Insurance, in the simplest terms, means a transference of risk from the insured to the insurer. Around the world, individuals, families and businesses take advantage of the provisions of insurance so as to protect the possibilities of catastrophic losses that could occur due to loss of life or failure of a business. Over a period of time, the insurance industry has matured to throw up a multitude of products, and has grown into a multibillion-dollar industry.
The management of risk is the key to the operations of the insurance industry. While insurance agencies have necessary internal checks and ...

Analysis of LaSalle Hotel Properties

Introduction: Importance of ratio analysis
Financial ratios are important in analysing the financial performance of an organization. The financial performance is a key factor in the management of the organization. Financial ratios simplify the financial statements such as the income statement hence managers can easily determine whether the organization is profitable or not. For instance, profitability ratios such as the net profit margin indicate whether the organization is profitable or not. Managers can then identify areas of weaknesses and take corrective actions to improve the profitability of the organization. They are also used to assess the liquidity of an ...

Introduction

AB Dynamics plc is a company whose activities revolve around industrial engineering. The Group majors in the global automotive test systems market providing advanced testing equipment to the global motor industry. This company’s performance will be analyzed and compared to the performance of 600 Group, which is also in the industrialization engineering industry. The comparison will involve the analysis of ratios so as to establish profitability, asset use, efficiency and effectiveness of the operations (Raiyani, Raiyani and Bhatasna 12)

Performance assessment

The management and the shareholders of AB Dynamics can use the available financial ratios to assess the performance of ...

Profitability and Credit Risk Analysis: Apple Inc. and Owen Cornings Inc.

The report is based on conducting an in depth analysis of the profitability and credit risk of the two US based public listed companies, Apple Inc. and Owens Coming. For the purpose of conducting profitability analysis we will be having an overlook of how the company reaches to its bottom line profits and what income and expenses are deemed to reach at that figure. In addition, we will be analyzing multiples such ROE(including Dupont), operating margins, etc. for each company . On the other hand, as for credit ...

About the report:

In this report, we will analyze the financial performance of Double Ace Industries using the tools of ratio analysis where along with calculating six ratios under varied sections, we will also compare the results with the industrial average. Each ratio calculation will also be followed by an in-depth analysis about ongoing financial situation and with appropriate recommendations, if required. We are sure that by the end of this report we will be having a sound knowledge about the financial position of the company over the year and how its performance is comparable to the industrial average.

Ratio Analysis

i) Quick Ratio
Formula: ( ...

Income Statement:

The income statement reports the revenue and expenses of the firm over a period of time. The income statement is sometimes refered to as the statement of operations or Profit and Loss Statement. The income statement relies on the equation:

In other words, Income Statement serves the purpose of providing the investors and other users of financial statements with most appropriate profitability of the entity net of expenses incurred by the company. In an elaborated manner, income statement helps an investor to assess as how the business has performed by giving a summary of how the business incurs its revenue and ...

Financial accounting refers to the process of recording, summarizing and reporting the accounting transactions so held by an entity from its business activities. All such transactions are the then represented under the financial statements, i.e. Balance Sheet, Income Statement and Cash Flow Statement so as to present a true and fair view of the accounting transactions and also to ensure that such transactions are easily understood by the internal and external users of the financial statements. Important to note, that, all the transactions are reported under the relevant accounting standards relating GAAP or IFRS.
As for the financial reporting, ...

The first principle that BUPA must adopt is that it must understand true costs. This company will make this achievement by using the standard cost component. This tool should be applied in budget preparation, pricing reporting and performance based incentive plans (Elliott, 2004). This is based on the increase in utility costs, which has decreased the operating surplus. In 2012, the operating surplus was £ 38,364,000. This was a decline from £ 54,202,000 in the previous year (Bupa Care Homes (CFG) plc, 2012). Understanding true costs will ensure that BUPA improves its costing control system. In this case, ...

The operations of Kudler Fine Foods have been improving over years since 2003. The financial ratios for the business provide a clear picture whether the management has been working around the clock to ensure prosperity of the company. In addition, the horizontal analysis which compares the company 2009 performance and 2003 performance is used to show how the operations of the business have improved overtime

Liquidity ratios

Current ratio= current assetscurrent liabilities = 1971,000116,920 = 16.94.
This ratio is used as an indicator to suppliers whether the company will be able to pay its current liabilities especially credit purchases. The ratio ...

Introduction

This report aims at evaluating the financial statements of Xstrata plc. In light of its corporate objectives and the industry practises and performance. To achieve this, this report provides a brief history of Xstrata and analysis of sources of finance, gearing and dividend policies. This report primarily relied on Xstrata financial statements for the last five years; 2007,2008,2009,2010 and 2011.

Xstrata Plc. is a multininational company in the minning industry which is listed in the London Stock Exchange and is part of the FTSE 100 index. It has its headquarters in Zug, Switzerland, however, it has another registered ...

Executive Summary

The purpose of the assignment is the financial analysis of the global brand, Coca Cola along with the brief environmental scanning. The report starts with analyzing the competencies of the Company in internal and external environments and how these dynamics affect the operations of the Company. Given this environmental analysis, the Company decides its strategies, which directly affect the financial position of the Company. As an financial entity, Coca cola is a stable company with strong financials and balanced spending and revenue. The ROE of the Company as per the DuPont analysis is on a rise, which is a ...

Abstract

Financial analysis is an essential tool in the hands of the manager, as it is with its help the decisions related to the company’s finances are taken. Without the analysis and grounds for making such management decisions, the firm cannot achieve the desired level of income, or the lack of financial settlement will lead the company to bankruptcy. The purpose of the assignment was to perform financial analysis of a company listed on the Bursa Malaysia. Dominant Enterprise Berhad was chosen for the completion. The Malaysia-located company turned into public listed organization with thirteen subsidiaries, operating on production ...

Answer 1)

Marks and Spencer PLC, popularly known as M&S, is a UK-based multi-channel retailer. While the company is largely known for its clothing business as part of which it caters Womenswear, Menswear and Kidswear market, it also offers home necessities and luxury food products such as, cooking and dining products, flowers, and wine, et cetera. Rated as one of the leading retailers in the UK, the company offers its products through 852 stores in the United Kingdom and 480 stores in Europe, Asia and the Middle East.

Answer 2)

Outcome of Auditors’ Report:
The independent external audit of the company has been ...

Britvic Company Financial Analysis:

Introduction:
With operations in prominent countries of Europe like the Great Britain, Ireland and France, Britvic is renowned as one of the leading soft drink companies in the whole of Europe (Marketwatch.com, 2014).
The Company has been able and successful in setting up a definite portfolio across the markets where it operates. The brands of the Company that have captured its own market include Robinsons, Tango, J2O, drench, MiWadi, Ballygowan, Teisseire and Fruité. The Company also produces and sells famous drinks of PepsiCo Company such as Pepsi, 7UP and Mountain Dew Energy, in Britain and Ireland, as per ...

Introduction to Accounting: Debenhams and H&M

Introduction
Inevitably, the circle of an organization is extremely broad in which there are certain things talks about. Organization is known as a place, wherein people belong to different demographic work together for the achievement of a single and pre-specified goal in total. When it comes to corporations, then there are certain decisions which have to be undertaking for the achievement of the goal effectively.
Organizations have a traditional approach to tackle with different things and issues in total and with the help of traditional approaches, organizations would certainly increase their financial belongings in total (BRIGHAM, 2013, pp. 172-182). It ...

a) Liquidity Ratios:
These ratios analyse the ability the short term ability of a firm to meet its debt obligations. Generally two measures of Liquidity Ratios are used by analyst to adjudge the liquidity position of the company:
- Current Ratio
- Quick Ratio

Current Ratio: Current Assets/ Current liabilities

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.
As for Breadtalk, the current ratio of the company during 2012 was 0.60 which is below the industry level of 1.78.

Quick Ratio: (Current Asset – Inventory – Prepaid Expenses)/ Current liabilities

This ratio is a ...

1.0 Comprehensive analysis of a company's operations and performance
AACo is a world leader in the beef industry and other anima food sector with its over 600 thousand head of cattle and operate in 19 cattle stations across Australia. It also has two feedlots and three farms that are spread across more than 7.2 million hectares of land across Queensland and other parts of Northern Australia (AACo 2013).
The company was established in 1824, and is still standing firm as the oldest and continually operating company in Australia (AACo 2013). In terms of maintaining its continuous business operation, the ...

Introduction

Morrison supermarket is the among the largest food retailers in UK. The company success in the market over years has been attributed to establishing its own manufacturing facilities which allows it to control quality of its food. The company keeps its accounting records under the guidance of generally accepted accounting principles (GAAPS). In addition, its financial statements are prepared and presented in accordance with IFRS. The company financial records are audited by independent external auditors. This implies that the financial reports relied in calculating financial ratios are reliable. The ratio analysis of the company shows that the company profitability, ...