Essays on Acid Test

Foing-nova is an IT company located in Varaždin, Croatia, which provides software for users of the state budget. However, Foing-nova remains a small business despite recently changing its location and expanding its headquarters. After consulting RajkoTomiek, who is the CEO of Foing-nova, it was clearly understood that the most suitable method of company’s expansion would be to increase their market share. Although, Foing-nova is expected to gain new customers by entering a new market and thus become more profitable. However, a strategy must be put in place to ease the diversification of the company and to ensure ...

Rationale for the stock selection

Since the shares of preferred stocks have dividends that must be paid out before bonuses to the common shareholders, they are the class of ownership in a corporation. Thereby, possessing high claims on the company's assets, common stock, and earnings. It does not carry voting rights. Additionally, the preferred shares more rights as compared to the ordinary shares. Therefore, the rationale for selecting this stock rely on the ability of companies to retain the issue options of buying the common shares at an exercise price with a reasonable discount from the prices of the preferred securities. The accounting and ...

(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 ...

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 ...

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. ...

COMPANY PROFILES

Greene King Greene King Plc. is a UK pub retailer and brewer that brews, markets and sells beer. It has three operating segments; Retail, Pub Partners, and Brewing & Brands. It also operates restaurants and hotels. The company had about 1909 franchised pubs, hotels, and restaurants as of May 2015. It was founded in 1799 and has its headquarters in Bury St Edmunds.

Swot analysis of Greene King

Strengths: Its strength lies in the high quality of products. It has sustained the high quality of its products.

The company also has strong local roots that have contributed to customer loyalty.

It also has a strong distribution and sales network. Weaknesses: Over-reliance on the UK market. High costs of ...

Foot locker was incorporated in 1989. The company deals with athletically inspired shoes and apparel. This paper seeks to provide an intensive financial analysis of the company using the company financial ratios of years 2013 and 2014(Foot Locker Inc., 2016).

Financial Ratios

Current Ratios The main current ratios are the acid test ratio and current ratio. The current ratio is calculated when determining the ability of the company to meet the current liabilities from current assets. On the other hand, acid test ratio determines the ability of the company to meet current liabilities from all current assets apart from inventories ( ...

The City

Mark and Spencer is among the leading retail outlets in the United Kingdom. The company has over 1330 retail stores in various countries across the globe. The company mainly specializes in retail goods. The company stocks quality clothes, food stuff and a variety of home products. The company prepares its accounting statement per generally accepted accounting principles. Moreover, the financial statements are presented as per internationally financial reporting standards. This financial analysis is based on the company’s annual financial statement for the last five years (Mark and Spencer, 2015).

Liquidity Ratios

Liquidity ratios are used to gauge the company’s ...

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 ...

Following is the list of ten internal controls that the organization should have over the collection of the accounts receivables.

- Accounts receivable collections should be processed on a daily basis - Establishment of the proper information system by the organization - Proper segregation of the duties - Establishment of proper authority level - Constant review of the balances due from the customers so that proper check and balances is to be maintained by the organization - Reminder letters should be mailed to the customers after a reasonable interval of time - Money received in cash form from the clients should be deposited in banks on time - Proper recording of the transactions by ...

FOREWARD

This reports aims at shedding light in the best strategy for Ahold to adopt in identify the best target company to take over its aims to expand its food retailing services. In this report the best comparison that will lead to aid in best decision making is by use of ratios since the business are reporting in different currencies and since the use of exchange rate would be biased due to volatility of the exchange rates overtime and thus such results would be quite unreliable and might lead to wrong decision making which would adversely affect the predator ...

Introduction

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

Accounting

Introduction This whole essay is concentrated on the Hershey Company. This essay has been divided into five separate parts. In the first part of an essay, the discussion has been made regarding the Company’s introduction, its major line of operations, the major competitors of the Hershey Company, as well as the expected future growth of this Company. Second part is very important which includes the full discussion of the ratio analysis that has been used for evaluating the Company’s performance. In the third part of an essay, the auditor’s opinion made in the financial statements ...

TELUS is an innovative telecommunications company of Canada. It began is journey from the provinces of Alberta and British Columbia; going on to become the country’s second largest telecommunications company. Today, they provide a range to internet solutions for home, workplace or on the move. They provide a wide range of communication products and services such as data, Internet Protocol (IP), voice, wireless, entertainment and video. We would like to provide you with the brief history of TELUS to highlight major landmarks in its recent history. In the year 2009, it acquired Black’s Photography, a chain of small format ...

This memo provides a detailed ratio analysis of the financial statements of the company for years 11 and 12. It compares the company’s ratios for year 12 with that of year 11 as well with industry average ratios. For this purpose, we will use the quartile industry figures as benchmarks.

Liquidity ratios

i) Current ratio Current ratio shows the amount of current assets for every dollar of current liabilities in the company. It assesses the ability to pay short-term obligations using its current assets. It is given by dividing current assets by current liabilities. In year 12, the company had a current ...

Apple Company was founded in 1976 by Steve jobs, Steve Wozniak and Ronald Wayne with the objective of developing and selling personal computers. It was later to be named Apple Inc. in 2007 in order to mirror its shift towards consumer electronics. The company has well-established brands of equipment in the market that involves iPod media player, iPhone smartphone, and the iPad tablet computer. The company has continued to develop and come up with innovations hence ahead of its competitors such as Samsung. The company has been involved in several industries such as computer software, consumer electronics, and ...

Evaluation of Corporate Performance

Evaluation of Corporate Performance Apple Inc. is one of the most innovative and the famous corporations in the world today. Apple Inc. is the leading manufacturers of mobile phones, tablets, laptops and other electronic devices. However, their product ‘iPhone’ is the leading smart phone brand as compared to their other products. Apple Inc. was founded in the year 1976 and incorporated in the year 1977. The main aim of the company was to make and produce the personal computer for their clients. Apple Inc. is the second largest company in the smart phone industry on the basis of ...

Introduction – use headers / subtitles through out

I will mark grammar problems and you will have to correct them. Ebay was founded in 1995 by Pierre Omidyar and is currently headquartered in San Jose, California (Bjornsson, 2001). It was originally meant to be an online “flea market” selling goods for individuals. After selling the first item listed, a broken laser printer, Pierre began to expand the website. In 1995 and 1996, eBay began to hire its first employees and in January of 1997 the site hosted eight times as many auctions than of the entire previous year (Bjornsson, 2001). In 1998, Pierre and his cofounder introduced ...

Because of the vibrant construction industry, companies that deal with steel production have healthy financial records. The two companies that I will analyze are; the United States steel company and the second company is steel dynamics Inc. this are among biggest producers of steel and other carbon products in the United States and are considered as high performers by all means. United States Steel Corporation was established in 1901 by four people, and they were Elbert Gary, Carnegie andrew, J.P Morgan and Schwab Charles. The corporation implemented its diversification strategy in other activities and has gone into various industries ...

Part 1)

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

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

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

Introduction

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

- Liquidity Ratios Before the author of this paper analyze the ratios above, it is prudent to note that generally, liquidity ratios are always used to determine the ability of the firm or the business organization to meet its short- term debt obligations.

Current ratio

Current ratio= current assets/ current liabilities. The current ratio measures the company’s current assets against the current liabilities. Therefore, the higher the ratio the better. This is because higher number implies that the company has large amount of the current assets which can be used to meet the current liabilities. Therefore, we can say ...

Computer Sciences Corporation

Outlook of the Industry Information technology (IT) is one of the most important and authentic fields in the world, therefore it could be said that the entire industry is in great financial condition (Carpenter, Durtschi & Gaynor, 2011). There are number of companies in the world, specifically comes under the ambit of this industry in total. Company’s lies in the industry are enjoying high net income profitability of the company as a whole. According to revenue, this industry was on the peak some years before and currently it is also on a higher scale as well. United States and ...

Lab Report on Aldehydes and Ketones Experiment

Lab Report on Aldehydes and Ketones Experiment

The current experiment aimed at learning properties of some of the common aldehydes and ketones, as well as, the chemical tests used to distinguish the different classes. Both aldehydes and ketones have the same functional group known as carbonyl group C=O. In the aldehyde compounds, the carbonyl group is located at the end the structure with a general structure shown below (McNaught & Wilkinson, 1997). The carbonyl carbon is, therefore, the first carbon of the carbon chain. On the other hand, the carbonyl group in ketones is located anywhere on the carbon ...

Introduction

In the health industry just like any other trading environment operates on stringent financial environment lie any other firm that looks for future stability and sustainability. My choice is firm is Marshfield clinic, a pan American nonprofit making healthcare institution that has been in operations for almost the last one century. The institution was born when a group of six medical doctors came together and decided to pool their talent in improving the welfare of ailing Americans in the year 1916.The head office of the clinic is domiciled in the city of Marshfield. On the different fronts highlighted on ...

RPC is a plastic manufacturing conglomerate domiciled in the United Kingdom. The origin of the group can be traced from the merger between five companies in the year 1991, followed by management buyouts of several related plastic manufacturing businesses within the region. The twenty years ending 2011 have been very significant for the group growth wise, which has seen the company make great strides in the growth of different facets of business defined by sales, profitability, as well as the market share of the products that are offered to the market. The company is headquartered in Northampton shire and currently ...

Introduction

According to Michell, financial statement analysis is a procedural, keen and a very necessary step taken by interested parties in any business undertaking as a measure to scratch beneath the surface what can be seen by any person concerning the business’. This will set a very important platform for analysing very important parameters like risks the business is facing, returns and many others (Michell, 2010). A business has many stakeholders whose interests revolve around the operations and sustainability of the business as a going concern. This perspective narrows down to the fact that every interested party aims to see the business posting improved ...

Accounting Ratio Analysis of Abercrombie & Fitch Co

Introduction Abercrombie & Fitch Co. is a company that was incorporated in 1996 in Delaware. The company operates various retail stores selling a wide array of products, including: graphic t-shorts, casual sportswear apparel, woven and jeans pants, sweaters, shorts, personal care products and accessories for women, men and kids. This paper calculates various accounting ratios from Abercrombie & Fitch Co. latest financial statements which were for the financial year ended 29th January 2012 to facilitate investment decision making.

Test of Liquidity

Current Ratio = Current Assets/ Current liabilities = 1,488,775/705,353 = 2.11

The current ratio of 2.11 implies that the company can pay its maturing obligations using current assets 2.11 times.

Acid test Ratio = [Current Asset – Inventories]/Current Liabilities = [1,488,775-569, ...

Rolls Royce is a multinational corporation that operates in four main global markets which include; defense aerospace, energy, civil aerospace and marine. The company values it’s and brand more than anything else. Strategic innovation has been essential to the organization’s corporate objectives for over ten years and currently the company is delivering outstanding performance across the globe. This paper endeavors to conduct a financial analysis on Rolls Royce by evaluating the information provided in the annual report.

Discuss the importance of comparing income from operations to cash flow from operations

One significant effect of comparing the income from operations to cash flow operations is due to the fact that both give different ...

Introduction

Rolls Royce is the one of the world known leading company in the manufacture of the prestigious vehicles, the rolls Royce, it’s also accredited for being the leading manufacturer of aircrafts engines and part of the combustion and driving components components of ships manufacture of aircrafts engine as well as driving parts of ships. Over its existence the company has been leading in this industry with prospects of even rejuvenated domination due to its ever growing reputation due its innovation and production of high quality products that far much surpass the international standards,. The parent country for the ...

Introduction

Rolls Royse is a global leader in the provision of power systems and services at sea, on land and also in the air. Over the years, the company has established a very strong position in defense aerospace, energy and nuclear production and also civil airspace. The company is headquartered at Buckingham Gate in England but has operations in the regional offices in the US, Europe, Middle east, Asia and recently, Australia. In evaluating the performance of Rolls Royse, we shall gather both qualitative and quantitative information regarding the company and carry out a number of operations to gauge the company’s performance. ...

Introduction

The performance of a company is gauged by the evaluation of both qualitative and quantitative information regarding the company. Some of the qualitative information that is used in this evaluation of the company could be the experience of the management, macro and micro environment in which the company operates among other metrics. In making a decision as to whether a company is doing well, an in-depth analysis of the company’s financial information is particularly important. The comparison of the company’s financial data with its previous year’s performance and also with its peers and industry at large would shade ...

Background

Nike Corporation is an international organization whose core business activity entails the sale of footwears, sport equipments and other accessories. The company is well known for being an aggressive marketer and dominant designer of sporting equipments. In addition to marketing, designing footwears and sporting equipments, the corporation is famous for distributing its products across the globe. The performance of the corporation is highly esteemed and is usually termed as the best among various companies in the same industry.

The company was founded in the year 1964. Back then, it was not known as Nike Inc. but was known as ...

Competition Bikes Inc. Storyline

Horizontal Analysis In horizontal analysis, analyses of the performance of the company over a given duration of time is done. The intent of this paper is to analyze Competition bike's performance in the given period by using various methods. From the analysis of the financial statements of Competition Bikes Inc, there is a commendable performance in the company. Although there is a decrease in sales in the year 7 and the year 8 of 15 percent, a rise in the net sales is observed in the year 6 and 7, with an increase of 33 percent. This reduction in sales in the ...

Introduction

The name of this business is Star Magazine. The name springs from the kind of the business together with the activities involved. The Star Magazine will be involved in the marketing of an educative, informative, and inclusive magazine called Star. The magazine captures such critical areas in the society as Education, Environment, Entrepreneurship, and Empowerment. Consequently, the Star Magazine organization highlights these as the key areas the society that needs to be addressed accordingly. It is however important to note that the main role of the company is to get the content of the magazine from a group of university ...

Introduction

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

Liquidity Ratios

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

Current Liabilities 257, 967

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

Financial ratios

Comparison and interpretation Rate of Return on Equity (ROE) The ratio indicates the return of profitability for every one shilling of equity capital contributed by the shareholders. The 31.2% of plume incorporation means one dollar of equity generates $0.312 profit attributable to shareholders. The 14.9% ROE of Arrow company one dollar of equity generates $0.312 profit attributable to shareholders. The Arrows ROE is better than Plume because it is higher hence one dollar of equity generates more profits (Siddiqui, 2006).

Return on Assets (ROA)

The ratio indicates the return on profit from total assets. The 18.7% ROA of plume incorporation means ...

This paper presents analysis of Woolies ltd financial statements. Company’s financial analysis is of essence since it will be of significance in determining the performance and financial position of the company. The human resource director is subsequently able to interpret the company’s performance with respect to the profitability level, earnings per share or control as well as the liquidity position of the company. The paper therefore undertakes the analysis of Woolies ltd cash flow statement, balance sheet, and the analysis of income statement. Income statement tells the performance of the company throughout its financial period. The ...

Liquidity Ratios

These are ratios that help accompany to meet its short term maturity obligations. They are arbitrary measures that are used to verify a company’s capability to settle off short-term debts responsibilities. They basically measure the ability of the company to meet its near-term obligations. Current ratio and acid test ratio are example of liquidity ratio measures.

Current ratio

Current ratio is a liquidity measure that shows the rate at which a company is able to meet its short- term liabilities using its current assets. It indicates the capability of a company to meets its short term liabilities with its current assets. Companies with current ...