XERO LIQUIDITY Current Ratio. The current ratio has fluctuated from 2013 to 2015. In 2013 it was 10.83 where it then increased to 13.30 in 2014 and then decreased again to 9.63 in 2015. This is ok, although the ratio has overall decreased below the initial value of 10.83 in 2013. It is still above the ideal benchmark of 2:1 which means they are able to meet obligations. In saying that, the rate of decrease could be something to consider for Xero if they want to stay above the ideal ratio Quick Assets Ratio. The quick ratio has fluctuated from 2013 to 2015. In 2013 it was 10.83 where it then increased to 13.30 in 2014 and then decreased again to 9.63 in 2015. Although the ratio has overall decreased, the ratio is still clearly above the …show more content…
This is bad because the company is making losses as it is and these are increasing. Xero are not making enough revenues from their sales to pay for their expenses. Return on Assets margin. The return on assets margin has increased from -11.88% in 2013 to -17.95% in 2015. This is bad because it means Xero are not using the amount of assets they own to generate profits efficiently. However, comparing with the total asset turnover ratio it shows Xero are infact selling assets but in total it is not enough to generate profit. GROWTH: Turnover %. The turnover % ratio has decreased from 101.51 in 2013 to 76.7 in 2015. Over the three years, horizontal growth was increasing overall, this shows that the income growth of Xero is positive but at a decreasing rate. Net income %. The net income % ratio has fluctuated from 2013 to 2015. In 2013 the net income % was -82.73 % where it increased significantly to -146.11% in 2014 and then decreased to -95.62% in 2015. In 2013 the growth profit was well below the break even point, in 2014 it increased even more below the break even point (-146.11%). Although the company has recently increased its growth profit in 2015 they are still having problems in this area. …show more content…
The market share price for the 2013 financial year ended at 11.02 and in the following year increased to 39.35. This is an increase of over 300%, this can be seen to have been a exponential growth period of the company. In 2015 though, the market share price of the end of the financial year saw it drop to 24.10. This might be an indication of the market shares starting to decrease in the coming years. Current P/E Ratio. The Current P/E Ratio from 2013-2015 have been in the negative as dividends have never been paid. The Current P/E Ratio for the financial year of 2013 was -110.34, which is really bad. This can be interpreted that the risk of investing into company is high. In 2014, it had increased to -140.62. Though the in 2015 saw the P/E ratio make a substantial decrease to -54.56. This is still bad, but compared to the previous two years is much better. RESTAURANT BRANDS (RBD)
...s are doing well and over the many years have gone up. The company has not lawsuits currently pending which is good. The company as a whole seems to be growing even when the market is down.
EBay Inc. gains profits from stockholders, as well as a percentage of each good sold through it. In 2015, eBay’s annual report, as well as its balance sheet and income statement, expressed the income flows and profits over the last three to four years. Using the information gathered, the graph below can express trends which prove that eBay is losing business. The first thing shown is the cost of net revenues which were higher in 2015 than the previous three shown. The percentage of net revenues was also higher in the same year. However the net income was significantly lower in 2015 than in 2013 and 2012. The year 2014 appears to be a sign of struggle, in which case 2015 did result in a better outcome for eBay. This can also be seen when looking at the debt ratio which expressed how close the assets and liabilities are. Since the assets exceeded the liabilities (debt) closely, one could infer that this year was not viewed as profitable. In 2013, the assets were much higher than the liabilities which expressed that this was a better year than 2014 was. According to these figures, the hit eBay took in 2014 could possibly be why the stock dropped around $30 less. The price is currently going up but not by much at all. Some new efforts are likely to be the cause of the current stock price corresponding to the year before
Looking at the individual ratios seen in exhibit 1 and comparing it to the industry average shown in exhibit 2 gives a sense of where this company stands. Current ratio and quick ratio are really low and have been decreasing. For 1995, the current ratio is 1.15:1, which is less than the industry average of 1.60:1, however to give a better sense of where this stands in the industry, as seen in exhibit 3, it is actually less than the average of the bottom 25% of the industry. The quick ratio is 0.61 is less than the industry is 0.90. Both these ratios serve to point out the lack of cash in this company. The cash flow has been decreasing because, it takes longer to get the money from customers, but the company still needs to pay for its purchases. Also, the company couldn’t go over the $400,000 loan limit, so they were forced to stretch their cash.
They barely invested in anything (21). They also covered most of the lost from operations from financing a lot of their money. They took out a large bank loan and increase their debt. Stockholder also had to forgo their money to help keep the company from going down even further. In 1994 it was bad for stockholder but at least they got a dividend, unlike in 1995 when they had dues and no dividends. In 1995 it seems like they are planning something because they started investing over 16 times more than 1994 (from 21 to 330). This could mean they see opportunity coming in the near future. They lowered the lost from operation but still have high
When analyzing the time interest earned ratio, the higher ratio is better. Since Jones Inc.’s most recent ratio is 2.7356, this means that they could cover their interest expenses about 2.7 times or that Jones Inc.’s income is about 2.7 times higher than interest expenses. Higher ratios are better because they indicate a company’s ability to honor their debt commitments; high ratios are less risky. Over time, Jones Inc. has maintained a ratio varying slightly around 1.75. This ratio has increased for Jones Inc. in the past year because they paid off significant debt. Before this increase, their ratio was a little lower than their competitor’s. An investor who is solely concerned with this ratio will prefer a company with the higher ratio. Now that Jones Inc. has surpassed its competitor, it is more attractive to investors. Depending on their future funding from debt, they should continue with the same ratio, and even increase
Costco Debt to Equity Ratio was averaging at about 1.20 till 2012 but then it increased to 1.80. But its healthy TIE ratio of 31.82 and Current Ratio of 1.19 will help it in servicing new Long Term Debt and is not a cause of concern.Costco’s Quick ratio is on lower side at 0.60 but its Collection period is steady at 62 days. In 2012, Costco’s Sales revenues cross $100 Billion for the first time. However its Asset utilization ratio dropped indicating that increase has sales was on a higher asset base. This is something management should be concerned about.
Financial analysis -net revenue grew in 2013 and declined 2014 to 2015. Net revenue declined approximately 15% in 2015. The main reason causing this decline is the increase in fixed assets over one year, meaning, the company’s assets were just sitting idle. After ROA declined in 2015 (company is not profitable) it does appear that it is increasing by 4% in 2016 due to rebranding of products.
Rondo's Current Ratio is a steady at 2.0 compared to the industry average of 1.4. This indicates the company will not have a problem covering its current liabilities. Rondo's quick ratio is also steady at 1.4. The company can cover its short-term debt 1.4 times over without selling off its inventory. Rondo's performance is good in this area.
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
The ratio of 1.7 for the last two years indicates consistency, although a lower number is preferred. As a company produces high value product, this could be a satisfactory ratio. By comparing it to 2011 when a ratio was 2.9, in the last two years a ratio improved
Current Ratio: SIA's current ratio is more than 50% above industry average and its competitors showing SIA's strong liquidity position in meeting its short term obligations. However, with the aggressive acquisition of 19 A380s, its current ratio is expected to drop in the next few years. This might not be a concern as the A380s is expected to bring more benefits than costs to SIA which will be explained in the next section.
The current ratio declined from 2011 to 2012 but then improved from 2012 to 2013. The quick ratio declined from 2011 to 2012, but also improved from 2012 to 2013. The cash ratio improved from 2011 to 2012 and also from 2012 to 2013 (Walt Disney Co. (DIS) | Liquidity).
The current ratio and quick ratios for the year 2003 are at 2.5 and 1.3, which are both higher than the industry average. The company has enough to cover short term bills and expenses. Both the current and quick ratios are showing an upward trend compared to 2001 and 2002. The current assets decreased by $ 20,264 to $ 1,531,181 and the current liabilities also decreased considerably by $255,402 to $616,000, a 29.3% decline, thus making the current ratio jump to a 2.5. The biggest decline was seen is accounts payable which decreased by $170,500 to $230,000, a decline of 42.6 %.