Sunday, December 29, 2019

Company Financial Analysis Essay - 1249 Words

Emirates Computers Name: Instructor: Task: Date: Calculate the three (3) liquidity, five (5) financial leverage, six (6) turnover and four (4) profitability ratios for all the years as per example 3.5 in the PowerPoint presentations. Liquidity; Current ratio=current assets/current liabilities 2010:29021/19483=1.49 2011:24245/18960=1.28 Quick ratio= (current assets- inventories)/current liabilities 2010: (29021-1301)/19483=1.42 2011: (24245-1051)/18960=1.22 Cash ratio=cash/current liabilities 2010:13913/19483=0.71 2011:10635/18960=0.56 Financial leverage; Total debt ratio= (total assets-total equity)/total assets 2010: (29021-7766)/29021=0.73 2011: (24245-5641)/24245=0.77 Debt equity ratio=total debt/total equity†¦show more content†¦The services of operation of this company have increased as compared to the cost of manufacturing the product. The acquisition of the Perot systems led to the decrease in net income to 42.2 % in 2010. Health wise the company has shown progress and therefore Emirates Computers has plans to keep expanding its services to a higher level, which will eventually help the company (Peterson amp; Fabozzi, 2012). There has been an increase on the current assets as compared to previous year from 72% to 75% in the year 2011.The company has recognized all highly liquid investments such as credit cards from banks with a three month original maturities. These because there was increase in cash provided by operations while a decrease in cash in investing activities. The decrease in cash in investing activities is mainly because of lack of material they are important for acquisitions in 2011 as compared to 2010. Generally, the company has portrayed a good fiscal year and their good health. It indicates an improvement in the ability to generate profits and income. The company has shown efficiency and effectiveness in because all the three Profitability ratios that involve profit margin, return on assets and return on equity. The company has a qualified auditor who analyses the financial statement of accounts of the company. Although at one point, the auditor gave an unqualified opinion concerning its financial statements. This is evident when analyzing the property plant equipmentShow MoreRelatedEssay on Southwest Airlines Company Financial Analysis735 Words   |  3 PagesSouthwest Airlines Company Financial Analysis Five Year Financial Overview Southwest Airlines Co. | 2012 | 2011 | 2010 | 2009 | 2008 | Revenues | Not Available | $15,658.00 M | $12,104.00 M | $10,350.00 M | $11,023.00 M | Stock Price | Not Available | $8.56 | $12.98 | $11.43 | $8.62 | Profit Margin | Not Available | 1.14% | 3.79% | .96% | 1.61% | Net Income | | $178.00 M | $459.00 M | $99.00 M | $178.00 M | Employees | Not Available | 45,392 | 34,901 | 34,726 | 35,499 | Read MoreFinancial Analysis of Pepsi Co and The Coca Cola Company Essay850 Words   |  4 Pagesinvestment into any company, you would need to first take the time to review and study the financial records of the company. 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