Liquidity And Asset Management Ratio Analysis

3231 Words7 Pages
bulb-icon

Recommended: Theory of liquidity management

FACULTY OF SCIENCE AND TECHNOLOGY SEMESTER JANUARY / 2014 BBPW 3103 FINANCIAL MANAGEMENT 1 MATRICULATION NO : 820908025261002 IDENTITY CARD NO. : 820908025261 TELEPHONE NO. : 0125770772 E-MAIL : helm_82@oum.edu.my LEARNING CENTRE : SABAH LEARNING CENTER TABLE OF CONTENTS PAGE 1.0 Introduction 2 1.1 Digi.Com Berhad Background 2 1.2 Maxis Berhad Background 3 2.0 The Liquidity And Asset Management Ratios 5 2.1 The Liquidity And Asset Management Ratios Digi.Com Berhad 6 2.1.1 Liquidity Ratio 6 2.1.2 Asset Management Ratio 7 2.2 The Liquidity And Asset Management Ratios Maxis Berhad 8 2.2.1 Liquidity Ratio 8 2.2.2 Asset Management Ratio 9 3.0 Comparison of the Companies’ Liquidity And Asset Management Ratios 12 3.1 Liquidity Ratio 12 3.2 Asset Management Ratio 14 4.0 Conclusion 17 5.0 References 18 Appendices 1.0 INTRODUCTION Financial statement analysis is used to identify the trends and relationships between financial statement items. Both internal management and external user such as analysts, creditors and investors of the financial statements need to evaluate a company’s profitability, liquidity and solvency. The most common methods used for financial statement analysis are comparative statements, common-size statements, fund flow analysis and ratio analysis. These methods include calculations and comparisons of the results to historical company data, competitors, or industry averages to determine the relative strength and the performance of the company being analyzed. For this assignment I have chosen Telecommunication Company, Digi.Com Berhad and Maxis Berhad for evaluating their financial performance based on the calculated... ... middle of paper ... ...ncial Research. Retrieved from http://investing.businessweek.com/research/stocks/ Financials on 28/02/2014 Lecturer printed notes EDIFM, Islamic Accounting & Financial Management; Khairuddin Bin Zakaria Liquidity Ratios. Retrieved from http://www.investopedia.com/terms/L/liquidityratios. a.sp on 12/02/2014 Maxis Berhad Financial Statements. Retrieved from http://www.bursamalaysia.com/ market/listed-companies/company-announcements/6012 0n 10/02/2014 Maxis Communucations. Retrieved from http://en.wikipedia.org/wiki/maxis communications on 25/02/2014 Working Capital. Retrieved from http://www.investopedia.com/terms/W/workingcapital. Asp on 01/03/2014 APPENDIX 1 INCOME STATEMENT & BALANCE SHEET FOR DIGI.COM BERHAD APPENDIX 2 INCOME STATEMENT & BALANCE SHEET FOR MAXIS BERHAD

Show More
Related

  • Liquidity and Solvency Analysis Report for LifePoint Hospital

    1162 Words  | 3 Pages

    LifePoint Hospitals was founded in 1999 and has grown to be a leading hospital company with more than $3 billion in revenues and 54 hospital campuses in 18 states. They have more than 23,000 employees and nearly 3,000 physician partners striving to achieve their hospital’s mission and goals.

    Read More

  • Financial Raticiet Analysis: Kohl's Financial Information

    1039 Words  | 3 Pages

    The analytical formats used in response to question number 3 are threefold; 1) trend analysis, 2) common size analysis and 3) percentage change analysis. The rationale for this three-fold approach is that all other ratio analysis is derived from these three. The utilization of trend analysis aids in giving clues as to the financial status of the company is likely to improve or deteriorate. Likewise, the common size analysis relates to the fact that all income statement items are divided by

    Read More

  • Financial Analysis of Matalan and House of Fraser

    1898 Words  | 4 Pages

    Financial statement analysis: theory, application and interpretation / Leopold A Bernstein and John J. Wild 6th edition Mc Graw Hill 1998

    Read More

  • Ratio Analysis And Statement Of Cash Flows

    1163 Words  | 3 Pages

    Financial ratios are "just a convenient way to summarize large quantities of financial data and to compare firms' performance" (Brealey & Myer & Marcus, 2003, p. 450). Financial ratios are very useful tools in order to determine the health of a company, help managers to make decision, and help to compare companies that belong to the same industry in order to know about their performance.

    Read More

  • Harley-Davidson Performance Analysis

    1508 Words  | 4 Pages

    The first method we will review is the accounting method. Through this accounting approach we will analyze specific ratios and their possible impact on the company's performance. The specific ratios we will review include the return on total assets, return on equity, gross profit margin, earnings per share, price earnings ratio, debt to assets, debt to equity, accounts receivable turnover, total asset turnover, fixed asset turnover, and average collection period. I will explain each ratio in greater detail, and why I have included it in this analysis, when I give the results of each specific ratio calculation.

    Read More

  • Panera Bread Ratios

    774 Words  | 2 Pages

    A crucial facet of the examination of strengths and weaknesses of a business is a financial analysis. Financial analysis is comprised of ratio analyses, trend analyses, and comparisons with other companies. Financial ratios can be categorized consistent with the data they deliver. Financial ratios are valuable gauges of a business's operation and fiscal condition. Most ratios can be computed from information delivered by the financial statements. The following categories of ratios are commonly used: Liquidity ratios, Financial Leverage ratios, Turnover ratios, Profitability ratios, and Market Value ratios. A full financial profile of Panera Bread and their key competitors can be found in Table 3.

    Read More

  • AH LLC Liquidity Ratios

    838 Words  | 2 Pages

    The current ratio is a liquidity ratio that measures a company’s ability to pay short-term and long-term obligations. They seek to satisfy their liquidity needs through cash provided by operations, long-term secured and unsecured borrowings, issuances of debt and equity securities, asset-backed securitizations, property dispositions and joint venture transactions. They have financed our operations and acquisitions to date through the issuance of equity securities, borrowings under their credit facilities and asset-backed securitizations. Going forward, they expect to meet their operating liquidity requirements generally through cash on hand and cash provided by operations. They believe their rental income, net of operating expenses and recurring

    Read More

  • Analyzing Redcorp's Liquidity Ratio

    627 Words  | 2 Pages

    Liquidity described by Easton et al. (2018) “refers to cash availability: how much cash a company has, and how much it can raise on short notice” (p. 4). Therefore, liquidity ratio analysis is a financial health measure that investigates if a company’s current assets are enough to meet the company’s short-term debt obligations. Two common liquidity ratios are the current ratio and acid test ratio (quick ratio). Current Ratio.

    Read More

  • Financial Analysis of Scholastic and Daktronics

    2133 Words  | 5 Pages

    Evaluating a company’s financial condition can be done by looking at its profitability or its ability to satisfy long-term commitments. These measures can be viewed through an analysis of a company’s financial statements, including the balance sheet and income statement. This paper will look at the status of Scholastic Company’s (Scholastic) ability to satisfy its long-term commitments and at the profitability of Daktronics, Inc. (Daktronics). This paper will include various financial ratio calculations and an analysis of the notable trends. It will also discuss the profitability and long-term borrowing positions of the firms discussed.

    Read More

  • Financial Analysis of Verizon versus AT&T

    1338 Words  | 3 Pages

    Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories, profitability, asset utilization, liquidity and debt utilization ratios. The ratio analysis covered here consists of eight various ratios with at least one from each of these main categories. These ratios were used to compare and contrast the performance of Verizon versus AT& T over the years 2005 and 2006.

    Read More

  • Financial Ratio Analysis: Financial Stability And Performance

    1288 Words  | 3 Pages

    Upon examining P&G’s financial ability to meet short-term obligations, it is apparent that not only have their current liabilities exceeded current assets over the last three years, but close to half of their current assets have been tied up in inventories and other illiquid assets. For example, assessing both the quick and current ratio respectively shows that less than 70% of the firm’s current assets could be converted immediately to pay current commitments, but a little more than 90% of the firm’s liabilities would ultimately be covered. Though, based on industry average similar findings occur; therefore, it must not be uncommon for industries similar to P&G to

    Read More

  • Financial Ratios, Discriminant Analysis and the Prediction of Corporate BankruptcyANKRUPTCY – ARTICLE SUMMARY

    872 Words  | 2 Pages

    The article Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy was written in 1968 by Edward I. Altman. The purpose of the article is to address the quality of ratio analysis as an analytical technique. At the time some academicians were moving away from ratio analysis and moving toward statistical analysis. The article attempted to determine if ratio analysis should be continued, eliminated and replaced by statistical analysis or serve together with statistical analysis as cofactors in financial analysis. The example case used by the article was the prediction of corporate bankruptcy.

    Read More

  • Liquidity Management Case Study

    1243 Words  | 3 Pages

    There are some the potential risks that result of the decrease of liquidity which it will mention as the below.

    Read More

  • Financial Ratio Analysis

    1415 Words  | 3 Pages

    Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.

    Read More

  • Financial Analysis of Pepsi Co, Inc. and The Coca-Cola Companies

    1757 Words  | 4 Pages

    The purpose of this paper is to provide data and analysis of PepsiCo, Inc. and The Coca-Cola Companies financial statements so that a potential investor can make an educated decision about where to place their money. The paper shows a vertical analysis of each company’s consolidated balance sheet, a horizontal analysis of their consolidated statement of income ratios showing solvency, liquidity and profitability.

    Read More

More about Liquidity And Asset Management Ratio Analysis

Open Document