Financial Ratios
There are a number of financial ratios that will be valuable to a small business person. A small business is often concerned with cash flow, so ratios that are the most concern fall into three categories -- liquidity, profitability and efficiency. Liquidity ratios measure the ability of the company to meet its upcoming financial obligations. These ratios are important for ensuring that there is enough cash on hand to pay the bills. The profitability ratios are important because the business will be more successful if it is able to manage its margins. Efficiency ratios are concerned with how fast items like inventory or accounts receivable are turned over. These ratios are a direct reflection of the company's working capital, and improvements in these ratios improve the working capital flow.

These ratios are going to be slightly different from those that a large corporation values. The large corporation actually does value…...

This ratio eliminates the stock figure from that of current assets and like the current ratio; it is used to measure the liquidity of a firm. The quick ratio may in some instances be preferred over the current ratio as it is inherently difficult to turn some assets into cash. In regard to the two companies, the quick ratio brings out Plume Inc. As being more risky as it is more likely to default on its short-term obligations. According to Tracy (2009), the quick ratio of a firm should ideally be grater than 1.
Part B: Health and isk Analysis in Brief

Looking at the debt to asset ratio, Arrow Company comes across as being more risky than Plume Inc. This is basically because its higher debt to assets ratio exposes it to a larger amount of debt which both investors and creditors may be wary of. Further, the higher debt…...

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References

Gill, J.O. (1999). Understanding Financial Statements: A Primer of Useful Information.

Cengage Learning.

Tracy, J.A. (2008). How to Read a Financial Report: Wringing Vital Signs Out of the Number. John Wiley and Sons.

Financial atios From Income Statements:
Accounting in hospitality management is carried out to identify and document financial issues and produce information regarding an organization's assets, liabilities, and investments. Through this process, the management of a hospitality establishment understands and interprets financial ratios, which are crucial for basic control of operations in the establishments. Some of the most important financial ratios in hospitality accounting include average daily rate, occupancy percentage, room sales to total sales, cost of food sold percentage, profit margins for rooms and F&B, housekeeping cost per occupied room, and cost of beverage sold percentage. These financial ratios can be determined or worked out from a company's income statements or operational data (Casado, 2006, p.103). For the 310-room hotel in Costa Mesa, California, the Occupancy percentage is 7,755: 310 = 25.02%

Cost of labor percentage for rooms is 103,202: 437,433 = 23% for F&B is 113,349: 302,188 = 37.5%

Cost of food…...

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Reference:

Casado, M.A. (2006). Hospitality Accounting. In Hospitality management: a capstone course

(chap 9, pp.97-105). Upper Saddle River, NJ: Pearson Education, Inc.

Financial Analysis
Understanding how a company operates within any industry is dependent upon comprehension of many financial properties. Assessing the financial stability of a company is essential in determining the company's strengths and weaknesses as well as ultimately assessing its profitability. Financial ratios should be considered a useful tool when examining the profitability and efficiency of any company. Some companies are certainly more successful and profitable than others, and pharmaceutical companies in particular seem to have a distinct advantage when measuring financial ratios.

When assessing any organization, for terms of this paper are as follows: Johnson & Johnson, Pfizer and Merck it is important to consider the profitability and efficiency of the company. This is among the first information investors will explore before "investing" in a company. atio analysis is a critical analysis of the financial structure of an organization. There are four categories of ratios that need to be examined: leverage,…...

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References

 http://www.investor.jnj.com/trading_stats.cfm?page=ratios 

Calculating and Interpreting Financial Ratios.  http://aolsearch.aol.com/redir.adp?appname=MS&query=Pfizer%20efficiency%20and%20profitability%20ratios&url=http%3a%2f%2fwww%2efool%2ecom%2fportfolios%2frulemaker%2f2001%2frulemaker010531%2ehtm&datasource=Google&partner=Google&clickedItemRank=2&requestId=cns92890&component=websearch.google.http.tcl&searchType=MS 

MBA 681, Fall 2002. "Financial Analysis."  http://aolsearch.aol.com/redir.adp?appname=MS&query=Merck%20profitability%20and%20efficiency%20ratios&url=http%3a%2f%2fwww%2emgmtguru%2ecom%2fmgt499%2fTN4%5f3%2ehtm&datasource=Google&partner=Google&clickedItemRank=5&requestId=cns41327&component=websearch.google.http.tcl&searchType=MS

Therefore, I do believe that qualitative research is necessary. The financial statements can reveal much, but there are definitely instances in which the financial statements require contextual understanding for proper interpretation. Without this understanding, the firm's numbers may only reveal raw data. Raw data can be interpreted any number of different ways, so it is essential that qualitative analysis be conducted in order to place the numbers within a framework that will make understanding easier. or example, Landry's is taking on debt, but we know from the company's statements that this is to finance expansion and that hopefully when those properties are open, the returns will begin to improve.

How the firm makes money is an important consideration. This can help to not only place past performance into perspective but also to provide greater understanding of the firm's future prospects as well. Competitive advantages can be derived sometimes from the financial…...

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Free Cash Flow = Cash from Operating Activities -- Capital Expenditures (aka Cash from Investing Activities)

2003: $121,529 -- 189,930 = ($68,401)

2002: $111,637 -- 274,913 = ($163,276)

financial analysis and more specifically financial ratios has been noted by Finkler, Marc and Baker (2007, p.253) to be important to managers since it can help them in making informed decisions. In this paper, we present the concept of ratio analysis as applied to healthcare facilities.
The concept and purpose of ratio analysis

Financial statement analysis is noted by Flex Monitoring Team (2005) to be very important to managers, boards, payers as well as lenders for them to effectively make the right judgments on the financial health of their organizations. atio analysis is one of the most accepted methods of assessing the financial health of an organization. The data that is used for ratio analysis is derived from income statements and balance sheets. It is a fact that most health care systems, hospitals as well as various other healthcare organizations routinely employ ratio analysis in evaluating their financial condition and then…...

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References

Eichler HG, Kong SX, Gerth WC, Mavros P, Jonsson B. (2004)Use of cost-effectiveness analysis in health-care resource allocation decision-making: how are cost-effectiveness thresholds expected to emerge?. Value Health. 2004 Sep-Oct;7(5):518-28.

Finkler, SA.,Ward, DM ] and Baker, JJ (2007).Essentials of Cost Accounting for Health Care Organizations. Jones & Bartlett Learning,

Flex Monitoring Team (2005). Financial Indicators for Critical Access Hospitals. Available online at http://www.flexmonitoring.org/documents/BriefingPaper7_FinancialIndicators.pdf

Financial atios of a Prospective Borrower
Financial ratio analysis is a quantitative tool used to analyze financial standing of a business entity. The ratio analysis can also be used to compare financial capabilities of companies in different industries. This paper discusses how financial ratios can be used to answer questions about the management, marketing, and production capabilities of a prospective borrower. The paper also identifies ratios that demonstrate management competency and are mandatory to a financial services regulator.

atios demonstrating Production, Management, and Marketing Capabilities of a prospective Borrower

In the contemporary business environment, firms rely on loans from banks to improve their business operations. However, before a bank or other financial institutions can offer loans to organizations, they have to evaluate management competency, production, and marketing capabilities of a prospective borrower. The bank uses different financial ratios to analyze production efficiency of a prospective borrower.

An efficiency ratio is one of the…...

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Reference

Investopedia (2015). Ratio Analysis: Using Financial Ratios. Investopedia Inc.

Morning Star. (2016). Apple Inc. AAPL. Morning Star Inc.

Financial SolvencyIntroductionThere are a number of different solvency methods and techniques that governments can use in order to stay afloat financially. One of the most popular and commonly used solvency methods is tax revenue. This is when the government collects taxes from citizens in order to generate income. Another solvency method is borrowing money. This can be done through issuing bonds or taking out loans. Governments may also use reserve funds in order to cover expenses. This is money that the government has set aside specifically for emergencies. Finally, governments may also rely on grants or other forms of financial assistance from external sources. Solvency methods and techniques are important for governments because they allow them to generate income and keep their head above water financially. Without these methods, governments would quickly become insolvent and would not be able to function properly. This paper looks at the degree of solvency…...

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ReferencesCFI. (2020). Solvency. Retrieved from   R., & Garston, N. (1982). Operating ratio regulation: control theory approach. Transportation Science, 16(1), 67-82.Enright, M. (2021). Solvency Ratios Measure Financial Risk. Retrieved from  https://www.wolterskluwer.com/en/expert-insights/solvency-ratios-measure-financial-risk Freshbooks. (2019). What is solvency vs. liquidity? Retrieved from  https://www.freshbooks.com/hub/accounting/solvency-vs-liquidity Okunev, R. (2022). Financial Ratios. In Analytics for Retail (pp. 53-63). Apress, Berkeley, CA.Santomil, P. D., & González, L. O. (2020). Enterprise risk management and Solvency II: the system of governance and the Own Risk and Solvency Assessment. The Journal of Risk Finance.Walter, J. E. (1957). Determination of technical solvency. The journal of business, 30(1), 30-43.https://corporatefinanceinstitute.com/resources/knowledge/finance/solvency/ Cherry,

ratio analysis of Google and Microsoft. The initial component of the paper is a rundown of some key ratios and their definitions. Then, the ratios of the companies are calculated and discussed.
atio analysis is a tool by which companies in the same industry can be compared. The use of ratio analysis helps to offset the differences in size between companies -- for example one company may have a larger profit number, but a smaller profit margin, than a competitor. The ratio -- profit margin -- may be a better indicator o which company is actually more profitable. In this analysis, Microsoft and Google will be compared. Microsoft has a variety of multi-billion dollar businesses, including servers, Office and Windows, while Google makes most of its money on advertising sales. Yet, both companies are wildly profitable, and both have similar situations with regards to excess cash flow. They are also…...

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References

Goldman, D. (2012). Microsoft's $6 billion whoopsie. CNN Money. Retrieved November 18, 2014 from  http://money.cnn.com/2012/07/02/technology/microsoft-aquantive/index.htm 

Google 2012 Annual Report. Retrieved November 18, 2014 from  http://www.sec.gov/Archives/edgar/data/1288776/000119312513028362/d452134d10k.htm 

Microsoft 2012 Annual Report. Retrieved November 18, 2014 from  http://www.microsoft.com/investor/reports/ar12/download-center/index.html 

MSN Moneycentral (2014). Microsoft. Retrieved November 18, 2014 from  http://www.msn.com/en-us/money/stockdetails/financials/fi-MSFT?ocid=qbeb

Other applications of IASB are equally irrelevant to al-mart's particular operational model: The company does not hold a significant portfolio of hard-to-value financial instruments, engage in significant research & development, or conduct multiple distinct business lines that must be accounted for under different segments in an IASB framework. However, the company will have to switch from last-in first-out (LIFO) inventory valuation to a first-in first-out (FIFO) system, which could conceivably create an appreciable tax liability in the near-term.
8. If al-mart uses the cash basis of accounting, how would that differ from the accrual basis?

First, al-mart is currently not allowed to conduct its business on a cash accounting basis because it is too large to do so under prevailing IRS rules (Pub. 538) and because it necessarily keeps a significant inventory within its stores and warehouses. And even after it adopts IASD standards, it will operate on an accrual basis.

However,…...

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Works Cited

Internal Revenue Service. "Publication 538: Accounting Periods and Methods." 2008. Web. 17 Apr. 2010.

Wal-Mart Stores Inc. "Walmart Reports Fourth Quarter and Fiscal Year 2010 Results." Bentonville, AR. 18 Feb. 2010. Web. 17 Apr. 2010.

Yu, Carrie, and David Mason. "Issues and Solutions for the Retail and Consumer Goods Industries: International Financial Reporting Standards / U.S. GAAP." PricewaterhouseCoopers, 2008. Adobe PDF document. 17 Apr. 2010.

Introduction
Wal-Mart is the world’s largest retailer. They operate in many countries around the world, and have over 2 million employees. The largest market for Wal-Mart is the United States. Wal-Mart is the biggest grocer in the country, one of the biggest online retailers as well. By analyzing the financial statements of Wal-Mart, one can ascertain the company’s financial health as of 2015.

Financial Ratios

Financial statements for publicly traded companies are compiled according to a specific set of rules, and a format that is established both by convention and by the governance of the Securities Exchange Commission. The value of having these rules is that the information contained in the financial statements is reliable, and comparable. Not only can one compare Wal-Mart’s financial performance across different years, but it is also possible to compare Wal-Mart’s performance against other companies in its industry.

One of the means by which financial statements are analyzed is…...

ACCOUNTING/FINANCE QUESTIONS Accounting/Finance QuestionsWeek 1 HomeworkQ1.A sole proprietorship is, in basic terms, an enterprise owned by a single person. This essentially means that an enterprise of this nature does not have partners. One advantage of such an entity is that decision-making happens to be rather fast or quick as the number of persons to be consulted are few (i.e. in comparison to a partnership). Further, given that profits are not shared, the owner gate to keep all the profits. However, one key disadvantage is that it may be difficult to raise capital in this case. Also, the personal assets of the owner could be attached incase the business is unable to settle its obligations as there exists no distinction (for legal purposes) between the business owner and the enterprise itself.Q2.A financing activity could be described as any business activity or transaction that involves either the borrowing, repayment, or raising of…...

Financial analysts play a number of roles within an organization. They made assessments of the value of investments the firm has or may have in the future. They can specialize in determining the value of projects. In addition, financial analysts are engaged in risk assessment, and take steps to determining the best ways for the firm to mitigate the risks that have been identified. Overall, financial analysts use a multitude of different knowledge sets including taxes, finance, economics and risk management to assist the company in making the best financial decisions for the firm (BLS, 2010).
a )The net profit would be the gross profit less operating expenses, interest expenses and tax expenses. Thus, the net profit is: $1,000,000 - $345,000 - $125,000 = $530,000. From this the taxes are removed: $530,000 * (1-.3) = $371,000. The preferred stock dividends of $57,000 must then be removed in order to determine the…...

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Works Cited

BLS. (2010). Occupational Outlook Handbook 2010-11 Edition. Bureau of Labor Statistics. Retrieved May 21, 2011 from  http://www.bls.gov/oco/ocos301.htm 

Loth, R. (2011). Financial ratios tutorial. Investopedia. Retrieved May 21, 2011 from  http://www.investopedia.com/university/ratios/

Overall, at&T is the more profitable of the two companies. That Verizon has the stronger gross margins and at&T the stronger net margins indicates that at&T does a better job of controlling its cost structure than does Verizon.

The Industry

The telecommunications industry is highly competitive in both the landline and wireless segments. By 2006, wireless spending had match wireline spending. hile this presents significant opportunities for telecommunications, much of that spending comes in the form of cannibalizing, as wireline revenues have been decreasing steady over the past decade, matching the steady increases in wireless spending.

There are four major wireless operators in the U.S. And over 170 regional players (Megna, 2009). Competition is based on coverage area (capital investment), price and customer service. Both firms can be considered industry leaders. As of 2007, at&T had a subscriber base of 65.7 million and wireless revenues of $10.9 billion. Verizon had a subscriber base…...

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Works Cited:

MSN Moneycentral Verizon. Retrieved October 24, 2009 from  http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=VZ&lstStatement=Balance&stmtView=Ann 

MSN Moneycentral at&T. Retrieved October 24, 2009 from  http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=T&lstStatement=Balance&stmtView=Ann 

Loth, R. (2009). Financial Ratios Tutorial. Investopedia. Retrieved October 24, 2009 from  http://www.investopedia.com/university/ratios/ 

Chen, B. (2009). Verizon iPhone? Don't hold your breath. Wired. Retrieved October 24, 2009 from  http://www.wired.com/gadgetlab/2009/10/verizon-iPhone/

Financial Comparison
Financial analysis is a tool that allows third parties to analyze corporate financial statements. One of the main reasons that the Securities and Exchange Commission requires that statements are compiled and presented in a consistent manner is to ensure that third parties will be able to use the statements to compare different companies. These comparisons can, among other things, help with investment decisions. This paper will compare PepsiCo and Coca-Cola Company, the two leading soft drink marketers in the world. PepsiCo is actually the larger of the two companies, because it is more diversified, with its snack food properties. These properties also alter the company's finances, creating certain points of difference between the two companies. This report will cover a number of different forms of financial analysis, arriving at a conclusion about which company has the stronger financial position.

PepsiCo

The first set of ratios to be studied are the liquidity…...

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Works Cited:

FTC. (2010). FTC puts conditions on PepsiCo's $7.8 acquisition of two largest bottlers and distributors. Federal Trade Commission. Retrieved May 19, 2012 from  http://www.ftc.gov/opa/2010/02/pepsi.shtm 

Leckey, A. (2010). Coca-Cola Co. outlook strong after big acquisition. Los Angeles Times. Retrieved May 19, 2012 from  http://articles.latimes.com/2010/oct/31/business/la-fi-leckey-20101031 

Loth, R. (2012). Financial ratio tutorial. Investopedia. Retrieved May 19, 2012 from  

Different accounting methods can have a major impact on a company's financial statements. The two main accounting methods are accrual basis accounting and cash basis accounting.

1. Accrual Basis Accounting: In this method, revenue and expenses are recorded when they are earned or incurred, regardless of when cash actually changes hands. This results in more accurate financial statements that reflect the company's ongoing financial performance over a period of time. Accrual basis accounting provides a clearer picture of a company's financial position and performance, as it recognizes revenue when it is earned and expenses when they are incurred.

2. Cash Basis Accounting:....

Impact of Accounting Methods on Financial Statements

Accounting methods play a crucial role in the preparation of a company's financial statements. The choice of accounting method directly influences the recognition, measurement, and reporting of financial transactions and events. As a result, different accounting methods can significantly impact the presentation of a company's financial position and performance.

Income Statement

Revenue Recognition: The revenue recognition method determines when revenue is recorded. The cash basis method recognizes revenue only when cash is received, while the accrual basis method recognizes revenue when earned, regardless of cash receipt. This timing difference can affect the timing of revenue....

I. Introduction

1. Assessing Financial Health
   
   

   1. Ratio analysis for evaluating financial performance
   
   
   2. Evidence from accounting workbook for supporting claims

2. Temporal Analysis of Financial Ratios
   
   

   1. Comparing ratio analysis over time
   
   
   2. Illustrating trends and their impact on financial health

II. Body

1. Future Value of Money
   
   

   1. Effects of different compounding periods
   
   
   2. Influence of interest rates on future value

2. Influence of Regulatory Standards
   
   

   1. Alignment....

Abstract

Non-performing assets (NPAs) pose a significant threat to the financial stability and profitability of public sector banks in India. Effective tracking and monitoring of NPAs is essential for banks to manage risk and minimize losses. This paper presents a literature review to identify key insights from existing research that can inform the design of an NPA tracking framework using a machine-learning approach.

Introduction

NPAs are loans or advances where the borrower has defaulted or is unlikely to repay. They represent a significant financial burden on banks as they result in lost interest income and increased provision requirements. The accumulation of NPAs....