After you have mastered the material in this chapter, you will be able to: Explain the importance of comparisons and trends in financial statement analysis; calculate the ratios related to the profitability and financial stability of a business, from a given set of financial statements;...
In all fields of inquiry, whether financial, scientific, or any other, there is danger of not seeing the
woods for the trees. Nowhere is this danger greater than in the analysis of assets and liabilities as
well as in cash management, in a leveraged financial environment with derivative instruments that
change from assets to liabilities, and vice versa, depending on their fair market value.
Chapter 13 Analysis of Financial Statements
a. A liquidity ratio is a ratio that shows the relationship of a firm’s cash and other current assets to its current liabilities. The current ratio is found by dividing current assets by current liabilities. It indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future.
This is a book for businesspeople. All decisions in a business
organization are made in accordance with how they will affect
the organization’s financial performance and future
financial health. Whether your background is in marketing, manufacturing,
distribution, research and development, or the current
technologies, you need financial knowledge and skills if you are to
really understand your company’s decision-making, financial, and
overall management processes.
Tuyển tập Báo cáo Hội nghị Sinh viên Nghiên cứu Khoa học lần thứ 8 Đại học Đà Nẵng năm 2012
STUDY OF FACTORS INFLUENCE OF pH, TEMPERATURE, TIME, AND LIQUID RATIO OF SOLID TO SOLVENT PROCESS FROM BARK TANNIN EXTRACT SVTH: Huỳnh Tấn Luân, Võ Trung Định, Dương Thị Ni, Nguyễn Thị Thanh Thảo
Lớp: 09H, Khoa: Công nghệ Hóa học, Trường: Cao đẳng Công Nghệ, Đại học Đà Nẵng
Winning Business and its interactive CD-ROM can help business managers, investors, small business owners, and students better understand, monitor, and improve company performance. Successful business people use indicators to monitor conditions such as return on assets, liquidity, profitability, and growth. This book helps you determine these critical performance indicators and supplies you with benchmarks to see how your company stacks up against the competition.
The purpose of this research is to determine the factors that affect the profitability of commercial banks in Vietnam. Beside, the article has given the best solution to managers and investors to decide their business strategy and minimize financial risk.
Standardized option contracts provide orderly, efficient, and liquid option markets.
Except under special circumstances, all stock option contracts are for 100 shares of the
underlying stock. The strike price of an option is the specified share price at which the
shares of stock will be bought or sold if the buyer of an option, or the holder, exercises
his option. Strike prices are listed in increments of 2.5, 5, or 10 points, depending on
the market price of the underlying security, and only strike prices a few levels above
and below the current market price are traded.
In this chapter you will: Understand important financial performance measures and their users, by life cycle stage; describe how financial ratios are used to monitor a venture’s performance; identify specific cash burn rate measures and liquidity ratios and explain how they are calculated and used by an entrepreneur;...
Chapter 14 - Analyzing financial statements. After studying this chapter, you should be able to: Explain how a company's business strategy affects financial analysis, discuss how analysts use financial statements; compute and interpret component percentages; compute and interpret profitability ratios; compute and interpret liquidity ratios; compute and interpret solvency ratios; compute and interpret market test ratios.
As is common in the region, India is a bank-dominated market (Figure 3), and the relative
importance of bank assets as a percentage of GDP has continued to grow—partly as banking
penetration has deepened with financial liberalization, and partly as a result of the ongoing need
for deficit financing. However, the ratio of bank assets to GDP is still low by comparison with
other emerging East Asian economies, indicating that India still has some way to go before its
banking sector is fully developed.
Supervisory oversight of the S&L industry was both decentralized and split from the
examination function. The FHLBB designated each regional Federal Home Loan Bank
president as the Principal Supervisory Agent (PSA) for that region; senior Bank staff acted
as supervisory agents. However, field examiners reported to the FHLBB in Washington
rather than to the regional PSA, and the regional PSAeffectively reported to no one. In fact,
according to one insider, the regional Federal Home Loan Banks operated like indepen-
Chapter 13 - Analyzing financial statements. After studying this chapter, you should be able to: Explain how a company's business strategy affects financial analysis, discuss how analysts use financial statements; compute and interpret component percentages; compute and interpret profitability ratios; compute and interpret liquidity ratios; compute and interpret solvency ratios; compute and interpret market test ratios.
Chapter 10 - Credit analysis. This chapter begins with additional tools for assessing short-term liquidity. We explain liquidity and describe analysis tools capturing different aspects of it. Attention is directed at accounting-based ratios, turnover, and operating activity measures of liquidity. This chapter also focuses on capital structure and its implications for solvency. We analyze the importance of financial leverage and its effects on risk and return. We also describe book values and earnings coverage measures and their interpretation.
Số thứ tự (Theo danh sách lớp) KL thể tích tự nhiên - g (Natural density) Độ bão hoà - G (Degree of saturation) Khối lượng riêng - D (Specific gravity) Độ ẩm tự nhiên - W (Moisture contents) Giới hạn chảy - WL (Liquid limit) KL thể tích khô - gc Giới hạn dẻo - WP (Plastic limit)
Chỉ số dẻo - IP (Plasticity index)
Thành phần hạt - P
(Particle size analysis) - %
Hệ số rỗng - eo (Void ratio)
0.01 - 0.005
0.05 - 0.01
0.5 - 0.25
0.25 - 0.1
0.1 - 0.05
28 Understanding the Numbers
EXHIBIT 1.1 Ratio Short-Term Liquidity Current ratio Quick ratio (acid test) Receivables turnover Inventory turnover Payables turnover Long-Term Solvency Interest coverage Debt to capital Profitability on Sales Gross profit ratio Operating expense ratio SG&A expense ratio EBIT ratio Pretax income ratio Net income ratio Profitability on Investment Return on total assets: Before tax After tax
Tools that help us determine the financial health of a company.
We can compare a company’s financial ratios with its ratios in previous years (trend analysis).
We can compare a company’s financial ratios with those of its industry. Do we have enough liquid assets to meet approaching obligations ?If the average current ratio for the
industry is 2.4, is this good or not?
Financial Statement Analysis Tools
Describe what financial ratios are and who uses them. Define the five major categories of ratios (liquidity, efficiency, leverage, coverage, and profitability). Calculate the common ratios for any firm by using income statement and balance sheet
A second problem often observed in developing countries in the credit-investment process is
that loans are allocated according to political considerations or ties between bank managers
and the corporate sector. This practice is problematic for two reasons: First, even if the central
bank can create liquidity and the financial sector as a whole is thus not be constrained by a
lack of base money, banks in developing countries are often weakly capitalized. Legal
minimum capital-adequacy ratios hence limit the overall amount of loans provided by the
Liquidity Monitoring Ratios
a) The Debt Service Ratio is the proportion of exports of goods and non
factor services that is absorbed for debt service payments, i.e., interest,
principal and other payments. The basic ratio refers only to long and
medium-term debt which covers all loans with an original maturity of
one year and above.
b) The Interest Service Ratio is the ratio of interest payments to exports
of goods and non-factor services.