But in fact, only measures the risk cannot explain all the variation in expect returns, the sensitivity to the market return is more complicated.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Get Access Ratio Analysis Findings Ratio analysis findings essay Sample Ratios are used to analyze financial statements to determine their profitability, liduidity and solvency.
Liquidity Ratios are used by suppliers and short-term creditors such as bankers to measure the ability of an organization to pay its maturing short-term financial obligation. This is also used to determine whether the organization will be able to meet any unexpected financial need for cash.
Profitability ratios are used by creditors and investors to evaluate the earning power of an organization. Profitability is used to measure the operation success of an organization for any given time period.
Solvency ratios are used by investors, stakeholders and financial analyst to determine whether an organization will be able to survive over a long period of time.
The Huffman trucking liquidity ratios reveals that in the year the current assets are greater by approximately two thousand dollars and the current liabilities are greater in the year as well.
The quick ratio reveals that the Huffman Trucking Company has more cash and accounts receivables than the current liabilities. When comparing the year with the year the quick ratio shows an approximately one thousand dollar difference with the year being greater.
The receivable turnover reveals that Huffman Trucking had an increase in Net Credit Sales of approximately one thousand dollars.
The average net receivables decreased from the year to approximately thirty thousand dollars. The asset turnover is greater in the year by two thousand dollars. The average assets stayed the same making the asset turnover ratio greater in the year The receivables Turnover revealed the same in the years of and leaving the average being the same.
The profit margin for the year of is 5. The Huffman Solvency Ratios reveals that the debt to total assets ratio is less in than the prior year. Huffman Trucking total debt increased by approximately ten thousand dollars but the total assets also increased approximately ten thousand as well.
The current ratio for is 1. The current ratio indicates an increase from 1. The quick ratio for and are 1. The quick ratio is used to measure immediate liquidity of an organization.
The quick ratios for and indicate that Huffman Trucking is highly liquid. Receivables turnover increased from The quick ratio indicates that Huffman is very liquid and can easily convert certain assets quickly to cash. Asset turn over ratio increased from 3.
This indicates that the comapany is a very profitable one. Profit margin decreased from in by 0. This is a good sign indicating that Huffman is a profitable company.
Times Interest Earned ratio was This indicates that Huffman is able to meet interest payments as they come due. This increases investors confidence in the business. Debt to total assets ratio was This means that creditors have provided The above indicators shows that Huffman Tracking is a profit making organization, liquid and solvent.
Financial Accounting 7th ed. More essays like this:Analysis in Research Papers. To analyze means to break a topic or concept down into its parts in order to inspect and understand it, and to restructure those parts in a way that makes sense to you.
How to Do a Financial Analysis essay writing service, custom How to Do a Financial Analysis papers, term papers, free How to Do a Financial Analysis samples, research papers, help all stakeholders to be affected by the decision and how the findings of the financial analysis will be used in decision making.
Stakeholders may include lenders. RATIO ANALYSIS Ratio analysis is the most widely used tool since it compares risk and return relationships of firms from various aspects.
Ratio analysis is the method or process by which the relationship of items or group of items in the financial statements are computed, determined and presented. Describe and evaluate the financial environment at Genesis Energy by using ratio analysis of the company. Choose one ratio from each of the five categories listed in the table on page of your textbook, Brigham and Ehrhardt, and do a 3-year ratio trend analysis.
Significance of Ratio Analysis in Financial Statement 8 Limitations of Ratio Analysis 9 4. Data Analysis 11 Liquidity Ratio 11 Current Ratio 12 Return on Equity Ratio 29 5. Findings (SWOT Analysis) 31 6. Recommendations 34 7. Appendix 35 Appendix 1: Balance Sheet Essay on Ratio Analysis Ratio Analysis Joyce Wallace-Butler HCS/ February 11, Shawishi Haynes Ratios Analysis The relationship between two variables is defined by ratios.
When dividing the dollar amount of one item on a financial statement by the amount of another item on the financial statement a financial ratio is computed.