Essays on Liquidity

Conventional versus Islamic

Y M

Fin399-P

Dr. N E Abstract: The current paper relates financial analysis of commercial and Islamic banks in UAE. The aim of this paper is to evaluate financial performance of commercial and Islamic banks in UAE and make appropriate conclusions regarding comparative advantages and disadvantages of the two groups of the banks. The evaluation between commercial and Islamic banks was carried out with the help of financial analysis. Analysis of financial ratios was used as the main technique of financial analysis in this paper. There were four groups of financial ratios analyzed, namely: liquidity ratios, solvency ratios, ...

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 ...

The study of Bear Stearns abrupt fall and demise reveal the importance of credibility for a financial institution in a specific sense irrespective of its robustness. A business in general could fall if credibility and illiquidity become questionable. Bear Stearns is the first ever major investment bank to fail during the global financial crisis (Li and Mizrach, 2010). The 85 years old firm has survived a number of economic turmoil and recession, yet it fell when it was least expected to fall. A number of factors become apparent when studying the Bear Stearns demise, and these include the role of management, illiquidity, ...

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 ...

Liquidity is the ease of buying or selling an asset or a security without significant effects on the market prices (Baum, 2006). In the financial market, liquidity refers to the availability of credit or the ease of borrowing. Unlike a house, securities such as treasury securities, Eurodollar future contracts and the Standard & Poor’s 500 Index are all liquid since they can be easily converted into cash. In this case, liquidity refers to the ability of the central bank to provide money to the economy (Baum, 2006). This is reflected in the multiplier effects of the financial system. The level ...

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 ...

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 ...

The crisis of 2008 was the moment of truth for global economics pointing out new possibilities for developed countries to challenge their financial system. This world phenomena was one of the most discussed and controversial during the recent decade. Crisis events, which we observed in American financial system in the second quarter of 2008 affected the majority of countries all over the world and were so drastic and huge while measures of regulators stabilizing the situation so unprecedented, that it allowed to question the effectiveness and resiliency of American financial capitalistic model on global world market (Ershov, 2010). Some ...

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 ...

Hewlett Packard Company (HP) is an American multinational corporation founded by William Hewlett and Dave Packard in 1939 and incorporated in 1947 in California. The company is a provider of computer hardware, soft ware and IT services. Its main products include HP desktops and laptops, HP printers, HP servers and HP enterprise software. It also provides technology consultancy and outsourcing to businesses, states and organizations. Thus, the company falls under Information and Communication Industry. It main competitors in this industry include International Business Machine Corporation (IBM), Dell Corporation, Cisco Systems, Apple Corporation, Toshiba Corporation, Xerox Corporation and NCR Corporation. ...

Introduction

Mayo’s Clinic is a health organization that is based in Rochester in Minnesota. It was founded in 1899 and has grown tremendously over the years. Today, it employs approximately four thousand physicians and scientists and 60 thousand allied health staff. Similarly, Erie County Medical Centre is a health organization located in New York City. It has a hospital facility with 550-bed capacity and more than thirty outpatient service centres. This paper seeks to analyse the financial viability of the two entities. In addition, it seeks to analyse the financial viability of merging these two entities. To this end, this paper will ...

The paper is devoted to the analysis of financial ratios of Continental Tire AG and its two competitors in the world market – Michelin and Goodyear. Full ratio analyses include Liquidity, Leverage, Profitability, and Management Ratios analyses which will be represented in this research proposal. Companies’ balance sheets and income statements as of 2011 will be analyzed for the purposes of this paper. Input data for analyses of the three companies is included in Appendix 1, full ratio analyses is in Appendix 2. The first group of the ratios belongs to the liquidity financial analysis. There were three ratios ( ...

Introduction

General Motors, popularly known as GM, is one the largest automobile companies in the world. Founded in 1908 in Flint, Michigan, the company is currently headquartered in Detroit, Michigan. GM occupied the number one position in the automobile industry for 77 consecutive years from 1931 to 2007 ("General Motors Company and Subsidiaries" 2015). Currently, it is the 3rd largest automaker in the world. In 2009, due to operational inefficiencies, slowness in the automobile market in the USA and huge overhead costs, GM filed bankruptcy. However, it restored its operation within a year and came back to profitability within 2 years. ...

For the purpose of our analysis, we will be using the financial statemenst of Starbucks Incorproation while for accomodating peer review, we would analyze Mc Donalds. The concerned industry of both the companies is of Specialty Eateries.

Introduction:

Starbucks Incorporation is a well known premium coffee chain around the globe. The company is listed on New York Stock Exchange under the ticker symbol of ‘’SBUX’’. Starbucks Corporation operates around 60 countries around the globe and is known for niche prices in the coffee business. Apart from coffee, company also serves tea and other beverages.

Reason for choosing Starbucks Corporation:

Starbucks is a well established coffee brand and ...

Executive Summary

Financial management is one of the crucial success tools for any organization. A good financial management must include the use of the required accounting standards when presenting the financial reports. A company that is financially viable is most likely to compete favorably with its peers. In this paper, I have analysed the financial performance of Persimmon Plc in the last four years. The company’s current success lies in its ability to treat the global competition as an opportunity in building capabilities, and adopting strategies that result into competitive advantage. The analysis includes a brief introduction of the company and ...

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 ...

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 ...

About the company

Apple Inc. is an American multinational enterprise that design and develop consumer electronics, provides paid multimedia services and sells software. Headquartered in California, the company was founded in 1976. The consumer electronics of the company includes, IPhone. I pad, IPod and MacBook, while the paid multimedia service is known as ITunes. The company trades on NASDAQ under the ticker sign of ‘AAPL’.

Rational for selection

The core objective of this paper is to analyze the financial performance of Apple Inc. which has always been in good news for introducing innovative products into the market. Although the company had ruled the multimedia 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 ...

- Investment analysis of the Emirate Airline - The University - [Instructor’s Name here] - Table of Contents - Financial highlights analyses, 2010-2014 .. 02 - Horizontal analyses 02 - Vertical analyses 04 - SWOT analysis .. 04 - Cash flow analyses, 2010-2014 . 06 - Cash flow statements analyses 06 - Profitability position 08 - Liquidity position 08

Horizontal analyses The four-year revenue growth of Emirates Airlines was 90.4 percent, or an average annual growth of 22.5 percent. This growth performance is moderately high and impressive ...

Summary

The paper is devoted to the analysis of financial ratios of Continental Tire AG and its two competitors in the world market – Michelin and Goodyear. Full ratio analyses include Liquidity, Leverage, Profitability, and Management Ratios analyses which will be represented in this research proposal. Companies’ balance sheets and income statements as of 2011 will be analyzed for the purposes of this paper. Input data for analyses of the three companies is included in Appendix 1, full ratio analyses is in Appendix 2. The first group of the ratios belongs to the liquidity financial analysis. There were three ratios ( ...

ANALYSIS OF FORD AND GENERAL MOTORS

Introduction General Motors underwent incorporation as a Delaware corporation in 2009.The company designs builds and sells automobiles and automobile parts world over. Also, the company through GM Financial provides automotive financing services. Similarly, Ford Motor Company sells automobiles created and built by Henry Ford. The company, incorporated in Delaware in 1919, has its operations in six continents. Other than the production and sales of automobiles, it engages in the provision of financial services through Ford Motor Credit Company.

The process involves comparison of financial ratios of General Motors, Ford Company and the averages within the industry of operation. ...

Islamic banking performance and risks in MENA

1. Introduction Islamic finance was only a dream 50 years ago became reality now. Nevertheless, it is one of the fastest growing industries currently as well as it showed some strength at the time of Global Financial crisis (2007-2009). These features and others made Islamic banks a feasible and viable alternative for conventional banking system. Although Islamic Banking showed good signs but they faced and still facing some challenges (Risks). This paper revises the current risks faced by Islamic Banks especially in MENA region. Additionally, it’s going to measure their performance in these countries. Finally it will classify ...

Apple Inc: Financial Analysis

Problem 1: Liquidity Analysis: Liquidity Ratios are used to judge short term solvency of the company as if it have sufficient working capital to pay off its short term obligation. Generally, two measures of Liquidity Ratios are used by the 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.

Current Ratio: Current Assets/ Current Liabilities

2) Quick Ratio: Also known as Acid Ratio and a more stringent measure ...

Part 1)

Analyzing financial statements of the company is of great importance as it serves different purposes of each interested party. For Instance, while investors analyze the financial statements to evaluate their investment decision in the company, creditors are more concerned to judge the profitability of the company i.e if the company will be able to honor their agreed payments on time. Apart from these outside parties, even the management of the company conduct financial statement analysis so as to formulate future plans and decisions.

However, there are different tools available for supporting the financial analysis of the companies and the same are discussed hereunder:

Vertical Analysis: A popular method of conducting financial statement analysis in which each entry of 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, ...

Introduction

The International House of Pancakes is a large company in the hospitality sector where its major operations are carried out through franchises. It is owned by the Dine Equity company which also owns other subsidiaries in the hospitality sector. Financial ratios are used by internal and external users to judge the financial health of the company.

Liquidity Ratios

Current Ratio (2010) = Current Assets = 325,720 = 1.68 Current Liabilities 193,353 (2009) = Current Assets = 337, 144 = 1.3

Current Liabilities 257, 967

Acid Test Ratio (2010)= (Current Assets- Inventory) = 325,720- 11,977 = 1.623 Current Liabilities 193,353 (2009) = (Current Assets- Inventory) = 337, ...

Introduction

Investors are increasingly becoming aware of the need for comprehensive business analysis in their decisions regarding investment portfolios. With that, several analysis tools including financial ratios have gained prominence. However, although the ratios are some of the key indicators of a business’ performance, they are subject to some limitations. In that respect, this report seeks discuss some of those potential pitfalls and demonstrate the ratios’ application with analysis of Apple Company’s liquidity, efficiency and profitability.

Analysis

Potential Pitfalls in Ratio Analysis

Financial ratios have some limitations that require them to be used together with other financial analysis tools for a ...

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 ...

The US Subprime mortgage crisis was a banking and financial emergency situation that led to a recession not only in the US but spread to many parts of the world. The disastrous effects of a crisis in the domestic subprime market on the rest of the world beg questions about the interconnectability and interdependence of the international economy as well as the financial institutions. The international financial crisis also revealed how vulnerable the global financial system was. Not only did the subprime crisis have a direct effect on global markets and countries that held a huge number of US mortgage backed securities and were ...

Executive Summary

The report is commissioned to analyze the financial condition of JakelBerhard after the takeover by the new director, Mr. Michael. In order to achieve our objective, we unearthed the financial trends using the tool of ratio analysis using multiple ratio sections of Liquidity, Profitability and Efficiency. Our comprehensive analysis indicated that with the arrival of new director, the company’s position has rather deteriorated with decreased liquidity, declining profit margins and weak efficiency position. In addition to the ratio analysis section, we have also discussed the importance of accounting information for a company like JakelBerhard and have also assisted ...

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 ...

Company Overview

Sony Corporation is among the largest manufacturers of consumer electronics products in the world. The company engages in the design, development, manufacture, and sale of various types of electronic instruments, equipment, and devices for consumer, industrial, and professional markets. Primarily, the company operates in Asia, Middle East, Africa, Europe, and America. The company also distributes gaming software and hardware ('Sony Corporation SWOT Analysis' 2013, p. 3). The company does the distribution, manufacture, and broadcasting of image-based software such as motion picture, television products, and recorded music. The company’s manufacturing facilities are mainly located in Asia, but the company ...

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 ...

(First name) (Middle initial) (Last name)

Key facts about Wal-Mart Inc.

The history of one of the largest corporation in the world –Wal-Mart – began in 1962 from the opening of the first store in Rogers, Arkansas. Now there are 11 thousand stores in 27 countries and the company keeps growing. Success story of Wal-Mart is definitely worth exploring, as at the present moment this company is the largest corporation in the USA and the second largest in the world according to Global Fortune 500 rating. Motto of the company: “Save money. Live better.” expresses its values and strategies in the very best way. ...

1.0 INTRODUCTION Tesco has grown in leaps and bounds over the years over the last two decades. Currently, Tesco is the second largest retailer in Europe and the third largest retailer. Carrefour, which is larger than Tesco, has a lower net income than Tesco. A research conducted by Bernstein Research indicated that the international prospects of Tesco have been underappreciated. In fact, it indicated that Tesco is better positioned for growth internationally compared to its competitors. Tesco has been a success story that has been studied by various researchers in an effort to unravel the reasons behind its success. Different ...

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 ...

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 ...

About the company

Founded in the year 1982 by George Washington University alumni Fadi Ghandour and his business partnerBill Kingson as Arab American Express, Amarex is an international main company and the first Arab company to secure listing on NASDAQ. The company was originally headquartered in Jordan which was late moved to Dubai, UAE. It is also the first mail delivery company to originate from Middle East. At present, it is the second largest mail delivery company after DHL and is continuing its expansion path through multiple acquisitions of mail delivery companies around the globe with some major acquisitions including, Priority AirFreight, ...

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 ...

Executive Summary

This work has to be written consecutively and logically in order to consider and to take into account all features and decisions of the problems and to comprehend the overall situation. I intend to define the main problem of the case, its issues and describe it. When the problems will be defined, and the description will be finished, I am going to analyze the financial performance of the business using the financial data of the case. This part of the paper is the largest and has a very important meaning for decision-making. Financial and numerical data describes precisely the ...

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 ...

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 ...

Analyzing Financial Statements 2013

Ratio analysis makes it possible to compare performance within the current year against performance in previous year. A trend can be established to determine areas which are expanding and the ones contracting. The profit margin ratio is one of the profitability ratios and indicates the extent to which costs of goods sold are being controlled in relation to sales income. The inventory turnover ratio is one of the efficiency rations and measures the efficiency of the business in keeping its inventory as low as possible in relation to sales; the more time the inventory is turned over, ...

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. ...

Executive summary

Special purpose financial statements that are conventionally provided by small businesses usually offer limited information in both quality and quantity. The main reason behind this is the freedom in reporting that small businesses have. Consequently, lenders have to be careful when using these statements in lending decisions. As a small business, Boat Builders Pty Ltd’s financial statements may not be in a good state as provided to be used in a lending decision. A critical evaluation of whether they represent the true status and performance of this business is necessary before a detailed financial analysis is done. A number of concerns arise ...

Executive Summary

Estimating the performance of a company using ratio analysis is essential in determining the company’s profitability for internal and external users of financial statement. In this regard, the paper focused on establishing the level of performance for Morrison Supermarkets Company, and compared with Mark & Spencer, a similar company in the industry. Therefore, liquidity, profitability, activity, and capital structure ratios of the company were evaluated. Morrison’s sales have increased from 12969 million Euros in 2008, to 15410 million Euros in 2010 then to 16479 in 2011. The company was able to have reasonable sales volume even in the ...

The Effect of the USA Economic Collapse on the Saudi Arabia Economy

Chapter 1 The foundation of the Saudi Arabian national economy is the petroleum market. As early as 1986 Saudi Arabia (SA) linked its riyal to the US dollar (USD) (Sultan 2011, p. 237). The US economy as the leading economy in the world can have a deep impact on the Saudi economy which is a leading oil exporter in the world. The United States experienced a global financial crisis which caused a domino effect of economic problems throughout the world. The crisis spread to the world’s economy; having a special effect on the Saudi Arabian economy. Affects on the Saudi banking ...

Introduction

United Bank for Africa Plc (UBA) is one of the leading financial service institutions in Nigeria and West Africa, listed on the Nigerian Stock exchange, UBA is rapidly evolving into Pan African Service institution. Several ratios were applied on the financial data of the company and there were areas where the company performed well while in other areas there are valid concerns.

Financial Analysis

There are various ratios that showed that the company had improved in terms of profit in the period 2007 to 2008. The following ratios showed positive growth. Net Profit Ratio: Net profit ratio increased from a figure ...

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

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 ...

Financial Markets and Institutions

Impact of Credit crisis on financial market liquidity The financial crisis which the United States economy had to face during the years of 2007 – 08 was the worst of its kind. The banking system had not faced a crisis of this magnitude since the 1930s which forced professionals who belong to this field to question the state of liquidity of the system. The central role that banking institutions, and which the financial business performs as such, is to provide the public with cash, allow them to make deposits and invest their funds in securities or provide them with term ...