Essays on Quick Ratio

Company Profile

Revered as the biggest e-commerce website around the globe, Amazon Inc. is an American multinational entity engaged in e-commerce selling and cloud computing. Founded in the year 1994 by Jeff Bezos, the company is headquartered in Seattle, Washington DC. Amazon is the biggest e-retailer in terms of revenue and market capitalization. Beginning with the modest background of selling books and Blu-Ray DVD’s, Amazon today offers more than billion products and is now operating globally with presence in 19 countries. The company is listed on NASDAQ under the ticker symbol of AMZN and is also the constituent of NASDAQ ...

Introduction

The paper compares the financial performance of Abcam and Novozymes for the FY 2015. The company (Abcam) spends a lot of cash on research and development. Therefore, it provides easy access to products, high development on the platform of e-commerce. The sales of Abcam increased significantly between FY 2015 and 2016. That is it almost made 90% of sales in other currencies such as the Japanese Yen, and Euro. The change in these foreign currencies during the recession period is favorable for the firm. Moreover, revenues of the product increased by over 15% on the reported basis during FY ...

Introduction

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

Financial Statement Analysis

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

Company Overview

GasLog Ltd. is an international firm engaged in managing, operating, and owner of the LNG carriers that includes a fully owned fleet of 22 carriers (Reuters). The company primarily operating in the liquefied natural gas market by providing worldwide maritime transportation including technical ship management services to five of the LNG carriers owned by third-party subsidiaries. The company’s corporate office is located at Rue Du Ga, Monaco, and currently trading in New York Stock Exchange under the ticker symbol GLOG after being incorporated in 2006 (Reuters). The discussion aims to analyze the GasLog Ltd. in terms of financial ...

QUESTION 1

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

Comparing the quick ratio vs. the current ratio, it can be noted that the decrease in quick ratio than the current ratio is higher in the case. This means that the inventory turnover may have not much contribution over the decrease in the liquidity of the company. In fact, it may be that the sales are increasing but there may be other reason on the play for the decrease in the liquidity. One of the prominent reasons could be due to use of cash from previous year in additional investment or more use of cash to support asset bought ...

Internal Analysis of Encana

Internal Analysis of Encana

Introduction

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

Answer a.)

According to the balance sheet of Clearwater Seafoods from the audited financial statement of 2015, the current asset is 211,237,000 Canadian Dollar, and Current liabilities are 167,631,000 Canadian Dollar in the year 2015. The calculation of liquidity is carried out as below.

Calculation of Liquidity

Figures in thousands,

Observation:

It was found that both the current ratio and quick ratios decreased from the preceding year showing that the liquidity of the company has declined from the previous year. Also, it can be seen that the current ratio is less than 1.5 in the year 2015. In a similar way, ...

Business

Assignment 2

The financial statement for the last seven years of the company shows improvement in earnings or revenue of the company every year. From 2009-2016, the revenue of the company showed significant improvement. This fact is also evident from ratio analysis of the company. The profitability of the company has increased from 2009-2016, return on equity in percentage has shown improvement in seven years, and in the same manner return on invested capital in percentage has increased. Further, return on assets in percentage has also increased, and interest coverage has also shown remarkable improvement. Growth has also been ...

Executive Summary

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

About the report

The objective of this report is to assist One-World Investment Consortium, who is planning to invest £150 million in Thomas Cook PLC, a British global travel company listed on the London Stock Exchange under the ticker sign of ‘TCG’. We duly understand the impact of our professional recommendation on Consortium’s final decision making related to investment, and therefore, we intend to be comprehensive in the approach our analysis. As for the structure of this report, it will be a two-part report. In the first section of the report, we will evaluate the past 5 year(2007-2011) financial performance ...

Introduction

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

Ratio Analysis:

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

Verizon Communications Inc. Financial Statement Analysis

Verizon Communications Inc. Financial Statement Analysis

This financial statement analysis project focuses on Verizon Communications Inc. Verizon Communications Inc. is a publicly traded American broadband telecommunications company with operations in about 150 countries globally and in about 2,700 cities. At the time of presenting this financial statement analysis document, Verizon Communications Inc. traded at a market price per share of $56.50 with a market capitalization of $229.21 billion (Yahoo Finance, 2016). The company’s main competitor has been AT&T. It operates in the telecommunications industry and has it main products including the telephony services, data services, and television ...

(Financial and SWOT analysis and Recommendation to Identified Problems)

Background

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

Global issues

Being the largest supplier of aircrafts and airbuses for Boeing Ic., investors of Spirit Aerosystem Holdings were largely concerned that in light of increasing demand for higher production units, the company might end up with oversupply of aircrafts. However, the management of Spirit Aerosystem Holdings has confirmed that the company is well positioned to adjust the planned changes in output and will not set up a new factory to fuel the production growth.

Ratio Analysis

In this section, we will analyze the past two year financial trend for Spirit Aerosystem Holdings using the tool of financial ratios. With the objective to ...

Keurig Green Mountain was founded in 1981 as best coffee and coffeemaker company in the United States of America, initially named as green mountain coffee roasters. It specializes in making best beverages imaginable at homes and workplaces. The company contributes a prominent market share in the coffee industry. The paper highlights the financial department of Keurig Green Mountain and focuses on the assets, liabilities, annual income statements, inventories, stocks, and other financial related concepts. The income statement of Keurig Green Mountain indicates that company is performing well for past few years. The revenues generated by the company are the ...

Referring to the ratio multiples of the company, we found that CanGo is in a very strong position to take up the new projects. Beginning with the working capital analysis, the company is having the current ratio of 5.39 and quick ratio of 4.53, which confirms the strong liquidity position and the ability to handle short-term liquidity requirements. Important to note, even the working capital amount of $164.5 million also confirms strong liquidity position of the company. Moreover, the existing net profitability , which is recorded at 10.97%, also confirms that the company is utilizing its available resources and assets ...

Introduction to PepsiCo Incorporated

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

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

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

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, ...

Internal Analysis

Internal Analysis

Introduction

According to David (2011), every organization has weaknesses and strengths in its functional areas. Organizations have several functional areas depending on the industry they operate in. A firm that seeks competitive advantage against rivals must build on its distinctive competencies, which are inimitable strengths that others cannot replicate. Similarly, it is important to build on weaknesses and to turn them into strengths. The process of internal analysis, therefore, involves establishing the company’s strengths and weaknesses within key functional areas. Once completed, an internal analysis helps employees to understand and perform their roles within the larger organizational ...

Introduction

The primary aim of the paper is to do the financial analysis of Samsung and provide a clear and concise view to the investors. It includes a brief overview of Samsung along with its financial position determines through the horizontal analysis. The ratio analysis is also used to determine the liquidity position of the company. The recommendation is also provided to help the investor in decision making for investment in Samsung. The conclusion is provided at the end by summarizing all the facts that are discussed in this paper.

Company overview

Samsung is a South Korean multinational company that is headquartered ...

Walmart is a multinational store that was founded on the idea of selling inventory at a low price (selling more for less). This selling concept has propelled the retailer to be among the largest across the globe. The firm enjoys a presence in over twenty-eight countries. Its network is made up of eleven thousand five hundred stores and eleven e-commerce sites (Walmart, 1). The adoption of e-commerce has enabled it to tap the growing demand for internet shopping. In the recent financial year, the firm revenue was $482.1 billion. The continuous growth and increasing economic value of the retail ...

Compass Group plc

Compass Group plc is a multinational company dealing with contract food service, support management, cleaning management and property management. It is a British multinational company with headquarter located in the compass house along Chertsey Surrey. Compass Group Company is the largest contract food service organization in the world. The company operates in more than fifty countries across the entire world. The company offers different food services in different locations and institutions such as the hospitals, cultural venues, offshore oil platforms, major sports, schools, offices, mining camps and various universities. The company has several shares and is very active in ...

Abstract

Phillips Morrison International is one of the most iconic brand in the tobacco and cigarette industry. Rated as the most innovative company in the industry,over the years, Phillips Morrison has diverted their focus on emerging markets that account for 80% of the global demand,while the westernized consumers are being introduced to next generation products. However, the focus of the company remains in Asia Pacific region as it looks to target growing population of India, China and other Asia Pacific regions. Even on the financial terms,the company is performing better than its core rival, British American Tobacco ...

Chapter 1

Nature of the Organization’s Business Under Armour is a multinational sports clothing and accessory company headquartered in Baltimore, Maryland. The company suppliers casual apparel and sportswear, and in 2006, it started offering footwear. The company sells its products worldwide targeting athletes at all levels as well as consumers having active lifestyles. To date, the company has opened various stores as well as factory outlets in various states and nations including Canada and China.

Organization’s History

1996-1998: Early Milestones 1996: Founding of the Company Kevin Plank founded the company in 1996 when he was 23 years old. He was the former ...

About the paper

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

INTRODUCTION ANDBACKGROUND/HISTORY OF THE BUSINESS

Qatar Cultural Creativity Center was established in 2005 following the decision of the President of General Authority of youth no. (2) for year 2005. The board of directors was constituted in 2012 following the decision of Minister of Culture, Arts, and heritage no (116) for year 2012. The Cultural and Creativity Center is a Not for Profit Organization. The Cultural Creativity Center targets the youth and aims at equipping them with both hard and soft skills that fosters the discovery of personal abilities (Ame Info). The Center teaches skills such as how to write and publish a book, how ...

2.6. Financial Analysis AP Moller Maersk is one of the renowned company in its industry and has been known to provide sustainable returns to the investors. However, the main aim of the financial analysis is not only to provide analysis relating to the company’s profitability, but also to provide an exploratory analysis and evaluation of the performance of APMM. More specifically, the analysis is based on four key qualities affecting the market value of a business, assessed by using traditional financial indicators. The analysis evaluates performance of APMM in liquidity, profitability, leverage and activity over the past 5 ...

Evaluation of Corporate Performance: Apple Inc.

Apple, Inc. is a U.S. based company that has its registered office in Cupertino, California. The company has a long history of innovative progression and it will not be wrong to state that the company has changed the ways of telecommunication. It has opened up new arenas of technology development and competition between electronic companies has become fierce in the last 15 years or so due to the company’s ability to develop new and unique products. The company sells computers, laptops, hard drives, tablets, music accessories, phones, etc. The company has its own operating system that runs on ...

Company Analysis: Qatar German and Company Medical Devices

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

Organization Performance Using Financial Ratios

Organization Performance Using Financial Ratios Ratio analysis refers to the process of determining, analysing and interpreting relationships by using financial statements. It is majorly used to evaluate various aspects of a firm’s financial and operating performance, such as profitability, liquidity, efficiency and solvency. The trend is then studied to determine whether they are deteriorating or improving (Nezlobin, Rajan, & Reichelstein, 2014). Financial ratio is an indicator used to analyse firm’s financial performance. The ratios are used by the creditors, accountants, analysts, shareholders and bankers to examine and evaluate data presented on a company’s financial statements (Nezlobin, Rajan, & ...

JPMorgan Chase & Co is a commercial and an investment banking institution based in the United States. It was formed in 2000 when Chase Manhattan Corporation merged with JPMorgan & Co. It is one of the oldest and well known banking institutions in the USA and leads in investment banking, commercial banking, small businesses and financial services for its customers (Weston, Mitchell, & Mulherin, 2013). The company operations in the recent years is characterised by increased international activities and operation in its business. It is divided on business segments on a line of business. The parent company is the head office where ...

Introduction

The objective of this report is advise and recommend whether Restaurant Brand New Zealand Limited or Xero Limited is the better company to work for in relation to long-term employment. As companies that have the capacity to provide their employees with stable, long-term employment usually show strong growth and are thriving economically in their chosen market. This report is also based on the financial information provided by the NZX Company Research database from the past three years and articles sourced from NEWZTEXT in order to present a comprehensive view of how each company is performing in the current environment.

...

What purpose do financial ratios serve? Why would anyone look at a ratio when analyzing a company? After all, it’s just a number. Actually, financial ratios do serve a purpose. A big purpose actually. By themselves, they don’t tell us much. But when compared against other companies and the industry as a whole, they are very valuable. But we have to remember not all industries are the same. Capital intensive industries like energy are much different than healthcare. What may be a good ratio in one may not be in another. So what can a ration tell ...

1. Rationale for Selection Investors require financial analysis of a company to make decisions. A financial report is significant for the purpose of providing information regarding the financial position of a company along with the risk factors associated with it. A report is prepared to provide clear and complete information about Apple Inc. that includes all relevant sections that are crucial for an investor. Apple Inc. is an American multinational company that follows GAAP (Generally Accepted Accounting Principles) to prepare financial statements and annual report for its stakeholders. Its financial analysis includes financial ratio analysis, stock price analysis, associated ...

Introduction 3

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

References 20

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

Introduction

A.P Eagers ltd is a retail group trading in automotives and her main operations are based in South- East Queensland, Adelaide, Darwin, Melbourne, Sydney and the Hunter Valley in Newcastle. The business operations are centered on the ownership and operation of motor vehicle dealerships. These dealerships are concerned with a range of services that include sale of new and pre owned vehicles, service, spare parts, and customer financing facilitation. This paper seeks to conduct an objective financial analysis (trend and ratio analyses) based on the audited financial reports of the entity for the four year period between 2011 and ...

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 ...

Introduction

This paper seeks to conduct an analysis for the financial performance of the Toyota Motor Corporation and General Motors Company for their financial years ended in 2015. In order to arrive at objective results, the analysis will compare different financial and performance ratios for both businesses. It is a purely objective analysis that will be based on the figures presented on the annual audited final accounts of the companies.

A.Ratios

Liquidity ratios These are financial metrics used to assess and determine an entity’s ability to meet its short term debt obligations. They include:

Current ratio

Quick ratio/Acid test ratio Profitability ratios. ...

Introduction

The paper is commissioned to perform financial analysis for Nike Inc. As part of this analysis, we will extensively discuss the current position of the company in the industry and how well it is forecasted to survive in the future amid the ongoing developments in the industry. However, the main focus of this paper will be to unearth the financial standing of the company over the recent past two years using the tool of financial ratios. In order to incorporate cross-section analysis in our analysis, we will also compare the ratio multiples with the competitor firm, Under Armour.

About the company

Founded ...

Question 1

Within an organisation, accounting plays an active role to ensure that all business transactions of monetary value are classified, recorded, measured, summarised and reported in an accurate manner by adhering strictly to basic reporting rules such as International Financial Reporting Standards (IFRS) or US GAAP. Accounting rules make sure that financial statements are prepared and reported accurately by complying strictly with all reporting principles. Additionally, accounting steps confirm that all financial information is included in reporting mechanism while financial statements contain no error or any material misstatement having huge financial consequences. When the industry follows one accounting mechanism, it ...

INTRODUCTION

With the intent to evaluate the financial As an established manufacturer of a line of fully-integrated wireless communication products serving an international market, New Technology Incorporated (NTI) is looking to start a partnership with outside entities for a long-term software security venture. After a competitive technical product evaluation, it has been determined that MicroStrategy, Inc. (MicroStrategy), a Virginia based corporation, represents the best potential candidate for this venture. This analysis will review the income statement trends, balance sheet trends, cash flow trends, and three key financial ratio trends for the years of 2013 – 2015 to determine if this merger ...

About the paper

The paper is commissioned to conduct a comprehensive financial analysis of UK based telecommunication company, BT Group PLC for the year 2011-2015. As part of this analysis, we will be using the tools of common-size statements and financial ratios. In addition, to perform the cross-sectional analysis, we will also compare the financial performance of the company with its competitor entities, Vodafone Group and Sky PLC. Along with analysis of the financial performance using the above stated criteria, we will also perform broad economic environment analysis to adjudge the company’s performance in relation to the economic trends and will ...

Introduction

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

Costing methods

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

Q1. Accounting standards play a significant role in the financial statements preparation process. The main international standard-setting organization is the International Accounting Standards Board (IASB) headquartered in London. It issues International Financial Reporting Standards (IFRS) which are used in more than 115 countries and is gaining acceptance in other states as well. These standards are also used on most foreign exchanges. Moreover, the IASB also issues framework for financial reporting and international financial reporting interpretations. Besides, the International Organization of Securities Commissions (IOSCO) also plays a significant role in the international standard-setting process. It doesn’t develop accounting standards, ...