Ratio Analysis The term ratio refers to one number conveyed in terms of another. The Ratio is a mathematical appearance of the liaison between two or more related numbers. Ratio Analysis, of all the tools of financial analysis available with a financial analyst the most vital and the most widely used tool is ratio analysis. Merely specified that ratio analysis is an analysis of financial statements done through the ratios. The analysis and interpretation done on the basis of the ratio give
significance of ratio analysis:- The ratio analysis is one of the most powerful tools of the financial analysis. this is used to a device to analyze and interpret the financial health of enterprise. Ratio analysis is stands for the process of determining and presenting the relationship of items and groups of items in the financial statements. It is an important tool of the financial analysis. The main following are the points of importance of ratio analysis: a) Managerial uses of ratio analysis:- Helps
and Singhvi (1979) adopting the working capital cycle approach to the working capital management, also suggested that investment in working capital could be optimized and cash flows could be improved by reducing the time frame of the physical flow from receipt of raw material to shipment of Finished goods, i.e. inventory management, and by improving the terms on which firm sells goods as well as receipt of cash. However, the further suggested that working capital investment could be optimized also
Project Titleprepared a Project Report On RATIO ANALYSIS at TATA REFRACTORIES LTD.ObjectivesThe project is started with the aim to ascertain the financial position of the TATA REFRACTORIES LIMITED since from last five years. The financial position of the company includes short-term analysis, Long-term analysis, and Profitability analysis. In profitability ratio analysis I have calculate Gross profit ratio, net profit ratio, operating ratio & operating profit ratio. OBJECTIVES 1. To know the overall condition
measured in this analysis are: a) The effect of inflation on value of the currency needs to be considered as absolute changes without accounting for real price changes may not accurate results. b) It involves only horizontal comparisons. Comparative statements pay no attention to the interrelationship
GENERAL INTRODUCTION: MEANING OF INVENTORY: The literary meaning of the word “INVENTORY” is stock of goods. To the finance manager inventory means the value of Raw Materials, Work In Progress, Finished Goods, Spares, Consumables, Spares, scrap. Inventory represents those items, which are either stocked for sale, or they are in process of manufacturing or they are in the form of materials, which are yet to be utilized. IMPORTANCE OF INVENTORY: Inventories constitute the largest component of
cost of raw materials, cost of finance, availability of critical inputs and dependence on market like buyer/seller market, other key technical parameters etc. In the absence of any defined factors and its values for carrying out the sensitivity analysis, it has been decided that a common 5% sensitivity factor on sale price/cost price of major raw materials should be applied in appraisals of all the projects irrespective of the industry. However, 10% sensitivity factor may be applied in highly volatile
Jawedullah Khushzad Professor Mosley FIN-3300-02 January 25, 2018 Johnson & Johnson – Written Analysis Overview of Company: Johnson & Johnson, Inc., is a holding company that incorporated on Nov, 10, 1887. The corporation and it supplements are committed in developing, manufacturing, researching and selling a variety of products in the medical field. Johnson & Johnson’s fundamental focus is on products associated to human health and well-being. The corporation has 119 facilities that operate in
FINANCIAL ANALYSIS OF MERCK & CO. 2010-2014 Merck & Co. Inc, also known as Merck Sharp & Dohme outside of the US, is an American leader in innovative health solutions through prescription medicines and vaccines in the health care industry. Established in 1891 in the US, the company is one of the oldest pharmaceuticals in the world as it was subsidiary to the German company Merck, created by Friedrich Jacob Merck in 1668. Approximately 30% of the total capital of the company is publicly traded
INTROUCTION Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Working capital is calculated as current assets minus current liabilities. If current assets are less than current liabilities, an entity has a working capital deficiency