Essays on Liquidity

High frequency trading has progressed a lot in the last decade or so. From being passive algorithmic trades to now active and aggressive computerised trading, the practice has added a lot of benefits and problems to the securities market. Volatility is generally considered a negative aspect in securities trading as it creates uncertainty and erodes the confidence of market participants. But it is also true that some volatility is necessary as price change is what makes trading survive. However, in the current environment, high frequency trades which involve working out complex algorithms and execution of orders in milliseconds can ...

Company Overview

Apple manufactures designs, and markets communication mobiles as well as media devices, portable digital players and personal computers in addition to making sales of the related software, accessories, services, network solutions as well as digital third-party content and applications. The management of the company`s business primarily is on the basis of geographic region including the Europe, America, Japan, Greater China, Rest of the Asia-Pacific as well as Retail. The Company has a commitment to bring the best customers experience onto its customers via its innovative software, hardware as well as services. It leverages its unique ability in designing ...

Analysis of Samsung Corp.

Introduction Samsung Corporations operates as a multinational company operating in electronics industry with the headquarter in Suwon, South Korea. It is a blue chip company listed in Dow Jones. The company makes profits in terms of trillion with over 200 trillion of assets and 168.088 trillion of equity (Michell, 2010). As of 2015, the company had around 307,000 employees contributing to its operations. This makes the company a big corporation thereby forming a platform for practicing how to analyze businesses. The profitability of a Samsung’s operation is dependent on the efforts put by the management towards ensuring ...

The usefulness of the balance sheet

a. No, the focus of accrual accounting, different to cash accounting, gives more accurate information about the company in the financial behavior. The accrual accounting matches the revenues and expenses operation in the generation date and not when there is cash transference. The income statement is more important than the balance sheet because the income statement explains the behavior of the company in the fiscal year and explains the capacity of the company to generate value to stakeholders. The balance sheet gives a "static photograph" of the current situation of the company. Only making the comparison of balance sheets ...

Research Paper

Research Paper

Introduction

High Technology Corporation (HTC) is an established maker of a variety of electronic components, and it serves an international market. HTC is now fully-integrated wireless communication service for worldwide use. However, to establish its brand in the global market, it has to dominate in its B2B activities. In this regard, it is useful if HTC invests in a global electronic brand in the international market. In the assignment, Apple Inc. has been selected for investment by HTC. The paper would conduct the financial assessment of Apple from a comparative perspective, to provide investment feasibility for HTC.

Background and Industry

Apple ...

Abstract

The major purpose of the study is to capture institutional policies used by Federal Reserve to counter periods of challenges such as the great recession. In which case, the study presents a platform for learning the financial markets of an economy and also the various strategies that the existing institutions within the economy can employ to solve any arising challenges within the economy. In order to achieve the above objective, strategy used to develop this research involves a proper analysis of the state of the financial economy of the United States of America before and during the times of ...

Portfolio of an average person can comprise of various investments made either through banks, equity market, mutual funds, insurance products etc. The weightage of these products or asset classes in different people’s portfolio depends on a lot of factors such as their income, return objectives, risk taking appetite, liquidity constraints etc. Each market or asset class has its own advantages and disadvantages, which can be related to either liquidity, rate of return, lock-in period etc. A person can open a savings account through any bank. It offers convenience to park funds and withdraw any amount any time. But ...

About the paper

The paper is commissioned to conduct financial analysis for West Marine Incorporation. As part of this analysis, we will be a performing a comprehensive analysis of the raw financial figures of the company and will use the tool of common-size analysis and ratio analysis to unearth the trend that led to led to changes in the financial position of the company for the past three years. However, before introducing the analysis section, we will be introducing some of the facts related to the company and some statistics related to the stock price movement. The report will finally be culminated ...

The paper provides a brief analysis of accounting policies of Google Inc. Google Inc. is an American multinational technology company that specializes in Internet-related services and products. The company is listed on New York Stock Exchange and headquartered in California. Goggle Inc. records its property, plant and equipment at cost less accumulated depreciation, or amortization in the case of intangible assets. The company uses the straight-line method of depreciation to charge depreciation over the useful life of an asset. The depreciation policies of the company are consistent and are in line with the industry practices. For instance, the buildings ...

The durable competitive advantage is defined by the book when a company has sustainable competitive advantage over its competitors, i.e. long term advantage. This is called as having wide moat. Among other qualitative factors, whether or not a company has durable competitive advantage, is decided using quantitative factors such as return on invested capital, financial leverage, growth rate of equity, current market valuation, positive cash flows, liquidity ratios etc (Otuteye & Siddiquee, 2015). For the company Bed, Bath & Beyond, Inc., Return on Invested Capital shows that it has remained in a healthy range of 21% to 26% during the last ...

Response to Q1a

Strategy 1: Aggressive. As per strategy 1, the Total funds requirements are to be divided into permanent and seasonal requirements based on the premise that permanent requirements are essential and the seasonal requirements vary and hence the permanent requirements need to be allocated out of the total monthly requirements based on Polly’s assessment of short term and long term average monthly requirements as shown below. Strategy 2: Conservative. For Strategy 2, the conservative funding requires Polly to allocate the whole amount to Permanent requirements with long term funds equal to $1,500,000 and the seasonal requirements to ...

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 ...

Analysis Tools

Analysis Tools The aim of this financial and analysis report is to evaluate the performance of Ford Motors as one of the companies enlisted in Fortunes 500.

Accounting for assets The Ford’s net property is valued at a cost, less the accumulated impairments and depreciation. The company capitalizes new assets when the management expects to utilize such an asset for more than 12 months. The company also expenses the repair and maintenance costs as they occur. The cost of depreciation is calculated by the use of the straight-line approach over the approximated useful asset life. The straight-line method ...

General Motors Co. was founded in September 1908 in Michigan. The company has grown to become one of the leading automobile manufacturers. It activities range from designing, manufacturing and sale of trucks, cars, and automobile spare parts. Currently, General Motors is a multinational company that operates in different continents (General Motors, 2015). Thus, its profitability is affected by the changes in global economy. For effective management, the company is divided into several segments. This research paper carries out the financial analysis of the company in the year 2012, 2013 and 2014. This analysis is done by considering different financial ...

A balance sheet shows the assets, liabilities and available capital a business has according to a specific date, such as the last day of the year. Understanding what is contained in the balance sheet is very important to gaining perspective on the kind of value a company offers shareholders who are considering investing. The balance sheet gives us information to know whether a company is able to fund its own growth over the short and medium term, or whether it will need to seetk other available options such as acquiring greater debt, selling debt and or creating more issues ...

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 ...

Introduction

The Bank as a commercial organization aims to make a profit, which ensures the stability and reliability of operation and can be used to expand its activities. However, the focus on the profitability of operation is always associated with various types of risks, which in the absence of limitation may result in losses. Therefore, any bank in determining the strategy of its activities creates a system of measures, which on the one hand, aims at making a profit, and on the other hand, takes into account the maximum possible prevention of losses in banking activities (Madura, 2012). The banking ...

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 ...

About the paper

The paper is commissioned to discuss the short-term debt scenario, foreign exchange risk management process and trends in the financial ratios of Arrow Electronics Limited. In order to achieve a desired outcome in the paper, we will comprehensively analyze the financial statements and accompanying notes provided in the latest annual report of the company, so released on 5th February, 2015.

Advantages and Disadvantages of sources of short-term finance

i) Bank Loans

Advantages:

No dilution of ownership Tax advantages because of interest deductibility No interference in managerial decisions Option to opt for fixed or adjustable interest rate loans Disadvantages: High cost of debt Obligation to pay timely interest and ...

Questions and answers

Prepare calculations and a one-two-page analysis (excluding the title and references pages) that addresses the following questions: Assuming that the expectation theory is the correct theory of the term structure, calculate the interest rates in the term structure for maturity. Next, plot the resulting yield curves for the following series of one-year interest rates over the next five years using both a and b. The expectations theory associated with the term structure asserts that the rate of interest for a long-term bond will be the same to a mean of the short-term interest rates that is expected to transpire ...

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 ISLAMIC BOND (SUKUK) MARKET OF DUBAI AND MALAYSIA

Analysis of Islamic Bond (Sukuk) Market of Dubai and Malaysia Introduction As the business has expanded all across the world due to rise of internalisation or globalisation, it has become necessary that both the sources of equity and debt capital must be obtained for financing operational activities. In this regard, experts in financial management designed different modes of finance in which issuance of bonds, in case of debt management, forms an integral position. However, these conventional form of bond issuance require trading based on interest rates and are not backed by any security. Therefore, based on Islamic principles, a ...

The objective with which the report is being prepared is the financial analysis of the books of accounts and the ratios of Specialty Fashion Group, which has been listed in the Stock Exchange as a fashion house in Australia. The attempt made will be examination of necessary ratios that explain all kinds of profitability, efficiency, long term solvency, short-term solvency and the returns on shareholder’s investments (Accountingedu.org, 2016). A comparative analysis is to be made between ratios of different years to understand the rising trends and to track performance indicators. The conclusion should then bring out whether there ...

Financial Statement Analysis

Part 1 – Financial Analysis One of the methods to evaluate the financial performance of a company is to perform ratio analysis. By calculating the ratios for Soule Company for 2013 and 2014, we can not only conclude on the current situation in the company’s finances but also understand its performance in dynamics. The analysis starts with the current ratio. The company’s current assets slightly increased in 2014 comparing to 2013 but so did its current liabilities. Therefore, the current ratio in 2013 was 1.66 and it decreased in 2014 to 1.5. Nevertheless, there are no liquidity issues ...

A1) Marks & Spencer plc. (M&S) is an international retailer with main business lines in food, clothing, and home products and general merchandise stores in more than 59 countries. It was started in 1884 and is headquartered at London, UK (Annual Report, p.1). The company has own stores, fully owned subsidiaries and JVs, combining together to form more than 1300 stores worldwide in food, clothing and general merchandise areas. Bulk of the business comes from UK market, and more than 400 stores are operational in other countries. The company has more than 80,000 employees (Annual Report, p.22). The company ...

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 ...

The City

Financial Analysis: Marks and Spencer Marks and Spencer is one of the leading UK leading retail with over 1330 outlets across the globe. The company specializes in home products, clothing, and food. Food consists of the largest share of the company revenue. The company financial statements are prepared and audited by independent external auditors. This makes sure that they reflect a true and fair view of the financial position of the company. This report is based on the company’s financial statement for the financial year 2014 and 2015. The ratios used in the analysis are liquidity, profitability, and ...

Introduction

The Great Depression of 2008 was one of the most impactful among all the recessions that took place in the world till date. The subprime recession of 2008 can only be compared with the Great Depression of the 1930s in terms of negative GDP (gross domestic product) growth, job loss, deterioration in wage rate, and decrease in total economic value for private and public organizations. The impact of the 2008 recession was felt all across the globe even though the recession started in the USA. The United Kingdom that largely followed the same expansionary fiscal policies like the USA ...

Workshop Management Database3

Normalization CTelNo as the key attribute..3

Normalization of Job number as the key attribute based on the Bill

of Material file 5 Normalization of Inventory Book, Part No. as key attribute..7 Entity Relationship Diagram for 3NF..9 Protoype design Microsoft Access..11

Introduction to United Kingdom’s Bicycle Industry14

Peleton Ltd ..14

Income Statement/ Financial and Non-Financial Performance15

Financial and Non-financial Performance16 Additional Financial and Non-financial Performance.16 Other Areas of Concern18 Recommendation.19

Introduction

In today’s business world, an up-to-date, complete, and reliable financial database system is a must for organizations that aim for efficient, secure, and orderly operation. The succeeding sections will discuss the logical design for a prototype relational database of Peleton, a distributor of bicycle, accessories, and related services for its workshop management. Peleton ...

Income Statement Vertical Analysis

The gross profit as a fraction of total revenue (gross profit margin) was 60 percent in 2012. There was a slight improvement to 61 percent in 2013 and 2014. Selling and administrative expenses was constant at 37 percent of revenues for all the three years. However, other expenses increased by one percent in each year between 2012 and 2014. The income before taxes as a fraction of revenues declined slightly between 2012 and 2013 by one percent before declining by 4 percent to 20 percent in 2014. Similarly, the consolidated net income as a fraction of the revenues declined ...

Turkey has been going through the rapid economic growth and large-scale urbanization since the 1950’s. Consequently, the real estate industry of Turkey has emerged into an advanced industry with multiple stakeholders including the real estate investment trusts (REIT). The companies of this type usually operate in the largest cities of Turkey where the economic activity is the highest. 5 most populous cities in Turkey that will be growing in the nearest future and that are of interest for the REITs are Istanbul, Ankara, Izmir, Bursa, and Antalya. The real estate sector amounts for almost 20% of the GDP ( ...

Executive summary

The report is meant to select and analyse stocks to invest in among the FTSE 100 companies. This involves analysing the expected performance of the stock exchange and FTSE 100 companies for the next five years and the influence of the general economy on such. It analyses the past performance of three companies in different industries and predict their performances in the next five years. The report also applies the concepts of portfolio theory, diversification and risk-return trade-off to create a portfolio. Analysis of economic factors indicates that the LSE will experience growth in the next five years. The ...

The financial crisis of 2008-09 may have started due to liquidity problems and bad decision making by banks, but was greatly exacerbated by loss of investor confidence in such institutions and banking system as a whole. And since the banking system plays a major role in financial markets, the markets tumbled, which ultimately affected even the real economy and other sectors. Investor confidence was eroded during the early phase of the crisis, when it became clear that the banks, and investment banks in particular, had become too unstable to manage their liquidity position. This sentiment spread like a wild ...

Part 3

Liquidity Ratio Leverage (Debt) Ratios Profitability (Performance) Ratios Activity Ratios Liquidity Liquidity is the ability of a firm to repay its short-term obligations when they become due. Short-term obligations can only be repaid using the firm’s current assets. Therefore, a firm is said to be liquid when the current assets are more than the current liabilities. The current ratio for the company was 93.75% in 2014 and 79.87% in 2013. This implies that P&G’s current assets were not sufficient to meet its short-term debts. The increase in the current ratio indicates that the liquidity P&G increased in ...

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 ...

[Your Name Appears here] [Your section appears here] [Professor’s name appears here] [Date Appears here]

Investing in Qatar stock exchange (QE) demands a high quality of knowledge and resources; these can be acquired by taking a proper insight of the foundations. There are around 43 companies in Qatar exchange1. If a person wants to invest on QE then he has two ways either he choose the conventional way and go down to the bottom of exchange and give his order to broker, or he can simple use the modern method by calling broker. There are stockbrokers who act ...

Company description

Dunkin Brands Group is a Delaware corporation dealing in the business of ice creams, baked goods, bagels, muffins, breakfast sandwiches, and hot and cold coffee, among other products. It franchises quick service restaurants all over the world. The company was founded in 1989 when Allied Domeeq Quick Service Restaurants acquired Baskin Robbins and Dunkin Donuts and organized the two firms under one name, Dunkin Brands Group, Inc. (Dunkinbrands.com, 2015). The company operated more than 18,800 distribution points in about 60 countries as at December 27, 2014 (Dunkinbrands.com, 2015). The company operates through its four segments; Dunkin Donuts-US, Baskin ...

- 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 ...

ABSTRACT

The aim of this dissertation is mainly to analyzethe risk in the New York Stock Exchange using Statistical aspects and the computation of Value at Risk. The technique of Value at Risk or Value at Risk (VaR) is a methodology to standardize the calculation of the various risks that occur in a business e.g. banks, stock exchanges and corporations. The risk is defined as the probability of obtaining a result different than expected, the factors that will depend on the position of the entity, the risk factor under consideration and the time of calculation. Thus, the VaR seeks to establish quantitatively the ...

What is the impact of effective formulation and implementation of strategies for venturing in international and global operations in Heineken Inc?

Abstract

Global business strategy depicts the process under which organizations assesses the future prospects of the firm towards achieving its objectives. Every successful organization engages in strategic planning plus those with global business operations as they seek to position themselves towards taking full advantage of the worldwide trend and opportunities. The notion behind the strategic decisions is normally based on the specific objectives, power, relationships, performance, economic and resources, technological, social and cultural result in change of the strategy. International strategy embraces the determination based on the correct balance between the global standardization and the integration plus the local responsiveness. ...

Foreign investment is defined as “the flow of capital from one country to another in exchange for significant ownership stakes in domestic companies or other domestic assets” (Investopedia 2015). Simply put foreign investment is putting up capital for a business opportunity in a country other than the home country. In the wake of the recent economic crisis that originated in the collapse of the US housing bubble in 2007, investing in international market is a smart business move to ultimately reduce the risk entailed in business ventures.

The most attractive aspect of foreign investment is that it ...

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 ...

Cash flows

The statement of cash flows is used by the company as a measure of a company’s financial health. This financial statement equals the cash receipts less the cash payments over a period of time, alternatively, it is the net profit summed with the amounts charged off depletion, depreciation, and amortization.

The statement of cash flows organizes and reports the cash generated as is used in;

Cash from operating activities; this converts the items that are reported on the income statement from the accrual basis of accounting into cash basis. This is the generated cash earnings before interest and taxes summed up with the depreciation less the taxes.

The company Andrews has its round one cash ...

BB’s Salad Palace is a salad chain that is situated in the Tri-state. It operates regionally, having a direct competition with salad works. The company specializes in the delivery of products that give a broader range of salad products at relatively cheaper prices. The company has attained success in the local market with the prospects of expanding its market, and this is only possible with the infusion of capital. The companies intends to become public so as to expand on the network of access of the needed funds for the expansion of its market. It will enable the company to achieve ...

Question 1. Explain why the aggregate demand curve slopes downward?

Answer: The summary of the IS-LM model is depicted by AD curve. AD curve slopes downward because at a lower level of price, the real money balance increases, and interest rate falls, which stimulates the investments. As a result the equilibrium income increases.

Question 2. What is the impact of an increase in taxes on the interest rate, income, consumption, and investment?

Answer: When the tax increases, it will cause the IS curve to shift towards left reaching to IS2 from IS1. As a result of this, the equilibrium point A shifts to B where the interest rate will reach to r2 by falling from r1. The income will also be reduced from Y1 to Y2. The increase in the tax ...

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) ...

A Fixed asset is termed as a long term asset that a firm owns and it is utilized by the firm in its daily production activities. It is not easy to convert fixed assets into cash in a short time and the conversion may take at least one year. There are many examples of fixed assets that include buildings, machinery, furniture and cars among others and they are collectively known referred to as plant. It is important for a firm to make good decisions when acquiring newly fixed assets because they are the assets used for production of goods, therefore, can be significant ...

Section 1.0 Executive Summary

Previously Merchant’s Bank of Halifax, the Royal Bank of Canada was founded by 134 Halifax businessmen was founded in 1869. However, it was later changed to its present name in 1901. In 1941, RBC became the largest bank in Canada moving in parallel direct as Canada as far as the economy is concerned. With its headquarter based in Toronto, Ontario Canada, RBC is able to cater to 15 million highly diverse clienteles needing different services as indicated in the organization’s five business segments given its highly diversified and competent 79,000 workforce. At present, RBC thrives in ...

- 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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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 ...