Financial leverage - ratio analysis, Financial Accounting

Assignment Help:

Provide a brief (one typed page) discussion of analysis of the ratios of your company versus the competitor and the industry, addressing your company's liquidity, solvency, profitability, and efficiency. Make sure to discuss any significant year-to-year changes including whether the company's situation has deteriorated or improved with respect to liquidity, solvency, asset management, and profitability. Books that provide industry averages, such as Almanac of Business and Industrial Financial Ratios, Industry Norms and Key Business Ratios, S&P's Industry Surveys, and Mergent's Industry Review, are available in the library. Some of the information is also available on the internet at MSN and Yahoo. (Present the ratios for your company versus competitor the industry in an Excel file with four columns: ratio name, the company's ratios, the competitor's ratios, and the industry average ratios.)  Use the ratios to answer each of the following questions with explanations:

a. Is it becoming easier for the company to meet its current debts on time and to take advantage of cash discounts?

b. Is the company collecting its accounts receivable more rapidly over time?

c. Is the company's investment in accounts receivable decreasing?

d. Are dollars invested in inventory increasing?

e. Is the company's investment in plant assets increasing?

f. Is the owner's investment becoming more profitable?

g. Is the company using its assets efficiently?

h. Did the dollar amount of operating expenses decrease during the three-year period?

i. Are there differences in accounting methods that should be taken into account when making comparisons?

 j. Which corporation has made most effective use of financial leverage?

k. Of the firms, which seems riskiest in terms of its ability to pay short-term or long-term obligations?


Related Discussions:- Financial leverage - ratio analysis

Terms "tangible" and "intangible" , Explain the meaning of the terms "tangi...

Explain the meaning of the terms "tangible" and "intangible" and discuss how these terms are used in describing assets.

Analyse daily prices-returns and volatility, Choose a share from a market s...

Choose a share from a market such as LSE, NYSE, NASDAQ, etc. [Data sources could be Datastream, Google Finance or others]. Prepare a report which involves the following aspects: -

Amalgamations-partnership, AMALGAMATIONS Two sole traders and a partnersh...

AMALGAMATIONS Two sole traders and a partnership,two or more partnerships or a sole trader and other partnerships may combine or join together to forma a single partnership. The

Financial reporting, what the meaning of the economic consequences of accou...

what the meaning of the economic consequences of accounting information quality with examples?

Activity-based costing (abc), Activity-Based Costing (ABC) An accounti...

Activity-Based Costing (ABC) An accounting method that assigns identifiable costs and allocates common costs to definite product lines or business fragments Also known as pro

Proof of debts-bankruptcy and liquidation, PROOF OF DEBTS The following...

PROOF OF DEBTS The following rules apply as to the proving of debts: 1) A creditor has no right to vote or receive dividends until his debt is proved to the satisfaction of th

Method of accounting for securities, Settlement Method - Method of ACCOUNTI...

Settlement Method - Method of ACCOUNTING for SECURITIES whereby transactions are recorded on the date securities settle by delivery or receipt of securities and receipt or payment

Quality discount and order quantity, The standard EOQ analysis is depends o...

The standard EOQ analysis is depends on the assumption which the price per unit keeps constant irrespective of the size of the order. While quantity discounts are obtainable, that

The partnership deed, The Partnership Deed It is the agreement that reg...

The Partnership Deed It is the agreement that regulates the partner’s actions in undertaking the partnership business. This may or may not have been drawn up.  It usually conta

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd