Submitted By TrangBui

Words 701

Pages 3

Words 701

Pages 3

Chart 7: Ogive of assessing servicing attitude

Based on above chart, it can be seen that x< 2 (assuming that x is mark), cumulative frequency is zero. It means that there is no responder who marks from 0 to 2 in term of servicing attitude. With x<4 on the x axis, it corresponds with about 6 on the y axis. This means that there are 6 responders who marked lower than 4. Similarity, for x<6, the above chart shows that 31 responders marked lower than 6. In other word, 31 responders assessed that serving attitude is normal and below. Likewise, 70 responders evaluated good and below because cumulative frequency is 70 at x<8. Obviously, 100 responders who took part in the survey so cumulative frequency is 100 at x<10.

The numbers in this below chart are calculated by MS Excel. Evaluating about servicing attitude in general | Value | Mid point (x) | (f) | Cumulative frequency | f(x) | |x - | | f(|x - |) | |x - |2 | f(|x - |)2 | 0x<2 | 1 | 0 | 0 | 0 | 5.86 | 0 | 34.3396 | 0 | 2x<4 | 3 | 6 | 6 | 18 | 3.86 | 23.16 | 14.8996 | 89.3976 | 4x<6 | 5 | 25 | 31 | 125 | 1.86 | 46.5 | 3.4596 | 86.49 | 6≤x<8 | 7 | 39 | 70 | 273 | 0.14 | 5.46 | 0.0196 | 0.7644 | 8≤x<10 | 9 | 30 | 100 | 270 | 2.14 | 64.2 | 4.5796 | 137.388 | Total | | 100 | | 686 | 13.86 | 139.32 | 57.298 | 314.04 |

The results are calculated manually 1. Arithmetic mean: = = = 6.86 (Manual computation) 2. Mode :

The mode belongs group from 6x<8 because the group is values which occur most frequently.

Applying the formula

= 7.21

3. Median :

The median is at the: = = 50.5. So that the value is between 50th and 51st item

Applying the formula:

=

= 6.98 4. Maximum:

Counting in 100 results from the survey, maximum is 10 5. Minimum

Counting in 100 results from…...

...financial ratios can be beneficial in helping a company regain its financial standing while pointing out its strengths and weaknesses. These ratios offer a summarized analysis of a company’s financial progress in its respective industry. There are a number of financial ratios that can be used to help measure a company’s progress, such as current ratio, debt ratio, profit margin, and return on assets. Riordan Manufacturing and Kudler Fine Foods are two businesses that appear to be doing well. Still, comparing the two by using the aforementioned financial ratios give a better examination of how each is fairing in their industries. Current ratio Current ratios show the relationship between a company’s current assets and it current liabilities. Ideally, a 2 to 1 ratio is deemed as the standard for companies to be in good financial standing. The formula used to calculate current ratios are current assets divided by current liabilities. The current ratio for Riordan Manufacturing is 4.71 while the industry average is 1.24, which indicates that the company is lagging behind in relation to what other companies in the industry are doing. For Kudler Fine Foods, its current ratio is 16.9. Its industry average is 1.52, which shows a much lower rate of growth than what Kudler Fine Foods is accomplishing. Calculations for the current ratios of both companies are below: Riordan Manufacturing: $17,377,957 / $3,685,152 = 4.71 Kudler Fine Foods: $1,971,000 / $116,290 = 16.9 Debt ratio Whereas......

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...[pic] ANALYSIS OF FINANCIAL STATEMENTS OF HOTEL LEELA VENTURES TABLE OF CONTENTS :: 1) INTRODUCTION TO HOTEL INDUSTRY 2) PROFILE OF HOTEL LEELA VENTURES LTD. 3) OBJECTIVE OF ANALYSIS AND METHODOLOGY 4) FINANCIAL ANALYSIS USING RATIO ANALYSIS 5) INTERPRETATIONS OF THE RATIOS 6) RECOMMENDATIONS 7) REFERENCES INTRODUCTION TO HOTEL INDUSTRY Over the last decade and half the mad rush to India for business opportunities has intensified and elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per day. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia Pacific. 'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 – to accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms fueling hotel room rates across India. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving......

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...Activities Ratios | 2012 | 2011 | 2010 | Total Current Asset | 11,267,000 | 4,604,000 | 2,246,000 | Net Receivables | 1,170,000 | 547,000 | 373,000 | Inventory | - | - | - | Total Asset | 15,103,000 | 6,331,000 | 2,990,000 | Total Liability | 3,348,000 | 1,432,000 | 828,000 | Total Shareholder's Equity | 11,755,000 | 4,899,000 | 2,162,000 | Total Revenue | 5,089,000 | 3,711,000 | 1,974,000 | Cost of Good Sold | 1,364,000 | 860,000 | 493,000 | Gross Profit | 3,725,000 | 2,851,000 | 1,481,000 | Average Total Asset | 10,717,000 | 4,660,500 | | Average Account Receivable | 858,500 | 460,000 | | Asset Turnover | 0.47 | 0.80 | | Inventory Turnover | - | - | | Days in Inventory | - | - | | Account Receivable Turnover | 5.93 | 8.07 | | Days in Receivable | 61.57 | 45.24 | | | Industry 2012 | FB Co. 2012 | FB Co. 2011 | Asset Turnover (H) | 1.04 | 0.47 | 0.8 | Inventory Turnover | 213.45 | - | - | Days in Inventory | 1.71 | - | - | Receivable Turnover (H) | 4.47 |......

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... | |Working Capital is more a measure of cash flow than a ratio. The result of this calculation must be a positive number. It is calculated | |as shown below: | |Working Capital = Total Current Assets - Total Current Liabilities | |Bankers look at Net Working Capital over time to determine a company's ability to weather financial crises. Loans are often tied to | |minimum working capital requirements. | |Accounting Ratios and its utility | |A relationship between various accounting figures, which are connected with each other, expressed in mathematical terms, is called | |accounting ratios. | |According to Kennedy and Macmillan, "The relationship of one item to another expressed in simple mathematical form is known as ratio." | |Robert Anthony defines a ratio as – "simply one number expressed in terms of another." | |Accounting ratios are very useful as they briefly summarise the result of......

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...How to Calculate Subnets Subnets and Hosts Borrow 2 bits S S H H H H H H # of subnets = 22 = 4 Subnet mask = 2 bits = 128 + 64 = 192 Range of hosts = 26 = 64 TT Range Useable Range Network ID 0 – 63 64 – 127 65 - 126 128 – 191 129 - 190 Broadcast 192 – 255 Address Borrow 3 bits S S S H H H H H # of subnets = 23 = 8 Subnet mask = 3 bits = 128 + 64 + 32 = 224 Range of hosts = 25 = 32 Range 0 – 31 32 – 63 64 – 95 96 – 127 128 – 159 160 – 191 192 – 223 224 – 255 Useable Range 33 - 62 65 - 94 97 -126 129 -158 161 -190 193 -222 Network ID Broadcast Address ©1999 Dan Foss How to Calculate Subnets Decimal/Binary Subnet Ranges Borrow 2 bits S S H H H H H H # of subnets = 22 = 4 = 00000100 Subnet mask = 2 bits = 128 + 64 = 192 = 11000000 Range of hosts = 26 = 64 = 01000000 [Range ……………………………] [Useable Range …………………...] Network ID 0 – 63 00 000000 – 00 111111 64 – 127 01 000000 – 01 111111 65 - 126 01 000001 – 01 111110 128 – 191 10 000000 – 10 111111 129 – 190 10 000001 – 10 111110 Broadcast 192 – 255 11 000000 – 11 111111 Address Borrow 3 bits S S S H H H H H # of subnets = 23 = 8 Subnet mask = 3 bits = 128 + 64 + 32 = 224 = 11100000 Range of hosts = 25 = 32 = 00100000 [Range ……………………………] Network ID 0 – 31 000 00000 – 000 11111 32 – 63 001 00000 – 001 11111 64 – 95 010 00000 – 010 11111 96 – 127 011 00000 – 011 11111 128 – 159 100 00000 – 100 11111 160 – 191 101 00000 – 101 11111 192 – 223 110 00000 – 110 11111 Broadcast 224 – 255 111 00000 – 111 11111......

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... RATIO ANALYSIS: Fundamental Analysis has a very broad scope. One aspect looks at the general (qualitative) factors of a company. The other side considers tangible and measurable factors (quantitative). This means crunching and analyzing numbers from the financial statements. If used in conjunction with other methods, quantitative analysis can produce excellent results. Ratio analysis isn't just comparing different numbers from the balance sheet, income statement, and cash flow statement. It's comparing the number against previous years, other companies, the industry, or even the economy in general. Ratios look at the relationships between individual values and relate them to how a company has performed in the past, and might perform in the future. MEANING OF RATIO: A ratio is one figure express in terms of another figure. It is a mathematical yardstick that measures the relationship two figures, which are related to each other and mutually interdependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an expression relating one number to another. It is simply the quotient of two numbers. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute figures as “ so many times”. As accounting ratio is an expression relating two figures or accounts or two sets of account heads or group contain in the financial statements. MEANING OF RATIO ANALYSIS: Ratio......

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...Ratio Analysis Solve the problem below, calculate the ratios, interpret the results against the industry average, and fill in the table on the worksheet. Then, provide an analysis of how those results can be used by the business to improve its performance. Balance Sheet as of December 31, 2010 | Gary and Company | Cash | $45 | | Accounts payables | $45 | Receivables | 66 | | Notes payables | 45 | Inventory | 159 | | Other current liabilities | 21 | Marketable securities | 33 | | Total current liabilities | $111 | Total current assets | $303 | | | | Net fixed assets | 147 | | Long Term Liabilities | | Total Assets | $450 | | Long-term debt | 24 | | | Total Liabilities | $135 | | | | | | | Owners Equity | | | | Common stock | $114 | | | Retained earnings | 201 | | | Total stockholders’ equity | 315 | | | | Total liabilities and equity | $450 | Income Statement Year 2010 | | | Net sales | $795 | Cost of goods sold | 660 | Gross profit | 135 | Selling expenses | 73.5 | Depreciation | 12 | EBIT | 49.5 | Interest expense | 4.5 | EBT | 45 | Taxes (40%) | 18 | Net income | 27 | 1. Calculate the following ratios AND interpret the result against the industry average: Ratio | Your Answer | Industry Average | Your Interpretation (Good-Fair-Low-Poor) | Profit margin on sales | | 3% | | Return on assets | | 9% | | Receivable turnover | | 16X | |...

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...Ratios and Formulas in Customer Financial Analysis Financial statement analysis is a judgmental process. One of the primary objectives is identification of major changes in trends, and relationships and the investigation of the reasons underlying those changes. The judgment process can be improved by experience and the use of analytical tools. Probably the most widely used financial analysis technique is ratio analysis, the analysis of relationships between two or more line items on the financial statement. Financial ratios are usually expressed in percentage or times. Generally, financial ratios are calculated for the purpose of evaluating aspects of a company's operations and fall into the following categories: * liquidity ratios measure a firm's ability to meet its current obligations. * profitability ratios measure management's ability to control expenses and to earn a return on the resources committed to the business. * leverage ratios measure the degree of protection of suppliers of long-term funds and can also aid in judging a firm's ability to raise additional debt and its capacity to pay its liabilities on time. * efficiency, activity or turnover ratios provide information about management's ability to control expenses and to earn a return on the resources committed to the business. A ratio can be computed from any pair of numbers. Given the large quantity of variables included in financial statements, a very long list of meaningful ratios can be......

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...DEFINITION OF 'SOLVENCY RATIO'A key metric used to measure an enterprise’s ability to meet its debt and other obligations. The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. The lower a company's solvency ratio, the greater the probability that it will default on its debt obligations. The measure is usually calculated as follows: Solvency ratio, with regard to an insurance company, means the size of its capital relative to the premiums written, and measures the risk an insurer faces of claims it cannot cover. The solvency ratio is only one of the metrics used to determine whether a company can stay solvent. Other solvency ratios include debt to equity, total debt to total assets, and interest coverage ratios. However, the solvency ratio is a comprehensive measure of solvency, as it measures cash flow – rather than net income – by including depreciation to assess a company’s capacity to stay afloat. It measures this cash flow capacity in relation to all liabilities, rather than only debt. Apart from debt and borrowings, other liabilities include short-term ones such as accounts payable and long-term ones such as capital lease and pension plan obligations. Measuring cash flow rather than net income is a better determinant of solvency, especially for companies that incur large amounts of depreciation for their assets but have low levels of actual profitability. Similarly, assessing a company’s ability...

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...Ratio Analysis – P7 Basic Ratios The business can know its performance by calculating certain ratios. Ratio analysis is a tool that business can use to know how it is doing. Ratios will help the business to make a comparison with other businesses or within the same business for the previous years. There are three types of ratios: Solvency ratios: Helps to know the ability of a business to meet its expenses, liabilities on time. Examples: Current ratio, Acid-test ratio Profitability ratios: Helps the business to know about the profitability. Examples: Gross profit percentage, Net Profit percentage, Return on capital employed Efficiency ratios: Helps to know how a business is efficient in terms of selling the goods, collecting its debts, using fixed assets etc. Examples: Stock turnover, Debtors collection period, creditors’ payment period Page 1 of 4 Ratio Analysis – P7 Question: Using the below profit and loss account and the balance sheet of Khalida’ Fashions to calculate all types of ratios for 2012 and 2013. Khalida’s Fashions LTd. Profit and loss account Sales Less: cost of sales: Opening stock + purchases -Closing stock Gross profit Less: Expenses: Rent and rates Advertising Wages Administration Insurance Interests Telephone Accountancy fees Legal fees Bank charges Depreciation Repairs and maintenance Heat and lights Miscellaneous Total Expenses Net profit 2012 2013 150000......

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...CHAPTER 3 – ANALYZING FINANCIAL STATEMENTS Questions LG1-LG5 1. Classify each of the following ratios according to a ratio category (liquidity ratio, asset management ratio, debt management ratio, profitability ratio, or market value ratio). a. Current ratio – liquidity ratio b. Inventory turnover ratio – asset management ratio c. Return on assets – profitability ratio d. Accounts payable period – asset management ratio e. Times interest earned – debt management ratio f. Capital intensity ratio – asset management ratio g. Equity multiplier – debt management ratio h. Basic earnings power ratio – profitability ratio LG1 2. For each of the actions listed below, determine what would happen to the current ratio. Assume nothing else on the balance sheet changes and that net working capital is positive. a. Accounts receivable are paid in cash – Current ratio does not change b. Notes payable are paid off with cash – Current ratio increases c. Inventory is sold on account – Current ratio does not change d. Inventory is purchased on account– Current ratio decreases e. Accrued wages and taxes increase – Current ratio decrease f. Long-term debt is paid with cash – Current ratio decreases g. Cash from a short-term bank loan is received – Current ratio decreases LG1-LG5 3. Explain the meaning and significance of the following ratios a. Quick ratio - Inventories are generally the least liquid of a firm’s current assets. Further, inventory is the......

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...10 RATIOS YOU MUST KNOW Liquidity Ratios Current (working capital) ratio Acid-test (quick) ratio – Cash flow liquidity ratio Accounts receivable turnover Number of days’ sales in accounts receivable Inventory turnover – Total assets turnover 651 10 RATIOS YOU MUST KNOW Equity (Long-Term Solvency) Ratios Equity (stockholders’ equity) ratio – Equity to debt 10 RATIOS YOU MUST KNOW Profitability Tests – Return on operating assets Net income to net sales (return on sales or “profit margin”) $ Return on average common stockholders’ equity (ROE) – Cash flow margin Earnings per share – Times interest earned – Times preferred dividends earned 10 RATIOS YOU MUST KNOW Market Tests – Earnings yield on common stock Price-earnings ratio – Payout ratio on common stock – Dividend yield on common stock – Dividend yield on preferred stock – Cash flow per share of common stock Now, let’s look at Norton Corporation’s 1999 and 1998 financial statements. NORTON CORPORATION Balance Sheets December 31, 1999 and 1998 1999 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets $ 165,000 116,390 281,390 346,390 $ $ 30,000 20,000 12,000 3,000 65,000 $ 1998 20,000 17,000 10,000 2,000 49,000 123,000 128,000 251,000 300,000 NORTON CORPORATION Balance Sheets December 31, 1999 and 1998 1999 Liabilities and......

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...Profitability ratios measure the company's use of its assets and control of its expenses to generate an acceptable rate of return Gross margin, Gross profit margin or Gross Profit Rate[7][8] [pic] OR [pic] Operating margin, Operating Income Margin, Operating profit margin or Return on sales (ROS)[8][9] [pic] Note: Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT and operating profit.[10] This is true if the firm has no non-operating income. (Earnings before interest and taxes / Sales[11][12]) Profit margin, net margin or net profit margin[13] [pic] Return on equity (ROE)[13] [pic] Return on investment (ROI ratio or Du Pont Ratio)[6] [pic] Return on assets (ROA)[14] [pic] Return on assets Du Pont (ROA Du Pont)[15] [pic] Return on Equity Du Pont (ROE Du Pont) [pic] Return on net assets (RONA) [pic] Return on capital (ROC) [pic] Risk adjusted return on capital (RAROC) [pic] OR [pic] Return on capital employed (ROCE) [pic] Note: this is somewhat similar to (ROI), which calculates Net Income per Owner's Equity Cash flow return on investment (CFROI) [pic] Efficiency ratio [pic] Net gearing [pic] Basic Earnings Power Ratio[16] ......

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...Chique Ltd – Ratio Analysis Ratios One of the best ways to explain financial ratios is to go through them as an example. The following example provides a set of financial accounts for Chique Ltd. from which you are going to calculate important ratios. The Company Chique Ltd is a small company that buys and sells Chinese Antiques. The company employed 14 staff in 2004 which increased to 18 in 2005. All sales and purchases are made on credit. What’s required Chique Ltd is going through some turbulent market conditions and the directors want a report that snapshots the whole organisation. To do this the directors have insisted a ratio analysis is done using the company accounts along with an explanation of what this means to the organisation. They have outlined the requirements below. Profit & Loss Account Profit and loss account for Chique LtdYear ending 30 April 2010 | | £m | Sales revenue | | 236 | | | | Less cost of sales | | | Opening stock | 51 | | Purchases | 71 | | Closing stock | 10 | | Cost of goods | | 132 | | | | Gross profit | | 104 | | | | Expenses | | | Rent and rates | 40 | | Administration | 15 | | Wages | 37 | | Marketing | 10 | | Heat and lighting | 8 | | Miscellaneous | 6 | | Total expenses | | 116 | | | | Net profit | | (12) | Balance Sheet Balance sheet for Chique Ltdon 30 April 2010 | | £m | Fixed Assets | | | Premises | 12 | | ......

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...1 Ratios and interpretation As we learnt in our earlier studies, accounting information is used to answer two key questions about a business: • Is it making a profit? • Are its assets sufficient to meet its liabilities? We have also considered the form in which different types of businesses prepare their final accounts. Now we need to examine in more detail how these accounting statements can be used to assess a business’ performance and progress. There are two stages in this process: 1 Analysis This is the detailed examination of various aspects of a business’ performance. To make comparisons (with other businesses or for the same business over a period of time) easier and more meaningful, the results are expressed as percentages or ratios, e.g. the percentage of gross profit to sales, or the working capital ratio. 2 Interpretation Here the results of analysis are used to judge a business’ performance. This is done by making comparisons a with other similar businesses, usually within the same year, e.g. was the gross profit to sales percentage last year better or worse than the average for the trade or industry? b for the same business over a number of years, e.g. has the trend of the gross profit percentage to sales over the last five years been up or down? We will also examine the extent to which analysis and interpretation are useful tools for owners and others in making and assessing business decisions. This unit is divided into three sections: Section 1: Ratios......

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