This website uses cookies to ensure you have the best experience. Learn more

Ratios Essay

459 words - 2 pages

Oracle Microsoft Notes: Comparison between the two companies' ratios

Earning per share As given in the income statement $1.69 $2.73 Cannot compare due to a different amount of shares outstanding.


Current ratio Current assets $39,174 = 2.76 $74,918.00 = 2.60
Current liabilities $14,192 $28,774.00


Gross Profit Ratio Gross profit amount $442 = 1.2% $1,637 = 2.3% Microsoft Sales (13940) - cost of revenue (15,577)
Net Sales $35,622 $69,943 "Oracles Sales(24,031) -Operating Expenses (23,589)
"


Profit margin ratio Net income $8,457 = 23.7% $23,150 = 33.1% Profit ratio
Net Sales $35,622 $69,943


Inventory Turnover Cost of goods ...view middle of the document...

99 0.93


Assets Turnover Ratio Net Sales $6,579 = 0.10 $13,940 = 0.14
Average Total Assets $67,556 $97,408 Microsoft 108,704+ 86,113 /2 Oracle $ 73,535 + $ 61,578/2


Return on Assets Ratio Net Income $8,547 = 12.65% $26,944 = 27.66%
Average Total Assets $67,556 $97,408


Debt to Total Assets Ratio Total Liabilities $33,290 = 45.27% $51,621 = 47.49%
Total Assets $73,535 $108,704


Times Interest Earned Ratio Net Income + Int Expense + Tax Expense $10,603 = 13.1 32,775 $32,775 36.0
Interest Expense $808 910


Payout ratio Cash dividend declared on common stock $1,061 = 12.4% $5,180 = 19.2%
Net income $8,547 $26,944

Return on Common Stockholders' Equity Net income - Preferred stock dividend 7,486 = 21.2% 7,925 = 41.7%
Average common stockholders' equity 35,287.00 19,019.00


Free cash flow Cash provided by operations minus capital expenditures minus cash dividends paid $9,703 = -$14,443 = Oracle Net cash provided by operating activities 11,214 -Capital expenditures - (450 ) Payments of dividends to stockholders (1,061 )
"microsoft-
Net cash from operations 26,994
-Purchases of investments (35,993 )
-Common stock cash dividends (5,394
"


Current cash debt coverage ratio Cash provided by operations $11,214 = 0.78 $26,944 = 0.98
Average current liabilities $14,441 $27,460


Cash debt coverage ratio Cash provided by operations $11,214 = 0.35 $26,944 = 0.59
Average total liabilities $31,834 $45,779


Price/Earnings ratio Market price as 6/30/11 $34.22 = 20 $33.40 = 12
EPS $1.69 $2.73

Other Papers Like Ratios

Financial Ratios and Interpretations Essay

1724 words - 7 pages LIQUIDITY RATIOS Interpretation of liquidity Ratios In order to survive, firms must be able to meet their short-term obligations—pay their creditors and repay their short-term debts.  Thus, the liquidity of the firm is one measure of a firm's financial health.  Two measures of liquidity are in common: Current ratio = current assets / current liabilities   The main difference between the current ratio and the quick ratio is that the latter

Vodafone Accounting Ratios Essay

571 words - 3 pages Accounting Project FAC210 / Dr.Doaa Abdu * Liquidity Ratios: 1. Current Ratio =Current AssetsCurrent Liabilites = 13029/27947 = 0.47 (2009) = 14219/28616 = 0.50 (2010) Comment: Current Ratio shows the company's ability to pay its short term obligations by its current assets. The ratio is better when higher and it improved from 2009 to 2010 2. Quick Ratio =Current Assets-InventoryCurrent Liabilites = (13029-412

Ratios Tell A

1815 words - 8 pages UV1765 RATIOS TELL A STORY—2005 Financial results vary between companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which the companies operate. For example, some industries require large investments in property, plant, and equipment, while others require very little. In some industries, the product-pricing structure allows companies to earn significant profits per

Ratios Tell Stories

1886 words - 8 pages UV1765 RATIOS TELL A STORY—2005 Financial results vary between companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which the companies operate. For example, some industries require large investments in property, plant, and equipment, while others require very little. In some industries, the product-pricing structure allows companies to earn significant profits per sales

Heat Capacity Ratios

3172 words - 13 pages                     The  Experimental  Determination  of  Heat  Capacity  Ratios  of  Gases,   N2,  CO2  and  Ar,  by  the  method  of  Adiabatic  Expansion

Starbucks Financial Ratios

1937 words - 8 pages not follow these rules and laws, they will be fined. Financial Ratios – Rebecca Mouser |Starbucks | |Balance Sheet | |Year Ended

Financial Ratios and Quality Indicators

1734 words - 7 pages Financial Ratios and Quality Indicators Monitoring ratios on a regular basis provides insight into how effectively a business is being managed. Investors/Lenders also evaluate risk by using several sets of ratios; ratios of assets to liabilities, and ratios of lender-investor dollars to owner-investor dollars. Recognize that ratios are only indicators and that only management can tell the full story about a business. The more adept management

Acc205 Week 5 Liquidy Ratios

1661 words - 7 pages Week Five Exercise Assignment Financial Ratios   1.      Liquidity ratios. Edison, Stagg, and Thornton have the following financial information at the close of business on July 10:     | Edison | Stagg | Thornton | Cash | $6,000 | $5,000 | $4,000 |   | Short-term investments | 3,000 | 2,500 | 2,000 |   | Accounts receivable | 2,000 | 2,500 | 3,000 |   | Inventory | 1,000 | 2,500 | 4,000 |   | Prepaid expenses | 800 | 800 | 800

Financial Ratios and Asset Classification

826 words - 4 pages interest ratio would not change. Since the bank requires all three measurements to be at or above certain levels, the loan would not be granted. Based on the parameters set by the bank, the loan would not be approved. The bank may change the requirements because the ratios are benchmarks only. The current ratio is dependent upon the composition of the assets. For example, inventory could have a high value and inventory is not easily converted to cash. Both the current ratio and acid-test ratios must be examined closely and an analysis of what the individual components of each type of account are.

D2 - the Adequacy of Accounting Ratios

1626 words - 7 pages D2: Evaluate the adequacy of accounting ratios as a means of monitoring the state of a business in a selected organisation, using examples. 1.0 Terms of reference In this report, I will be evaluating the adequacy of accounting ratios, so that the owner can keep an eye on what condition is their business in. This will able the business to see whatever they are making profit or making loss. The business which I will particular focus at

Introduction to Financial Ratios and Financial Statement Analysis

967 words - 4 pages 9-193-029 REV: SEPTEMBER 13, 2004 WILLIAM BRUNS Introduction to Financial Ratios and Financial Statement Analysis There is almost always a reason why someone picks up an organization’s financial statements and begins to analyze them. Lenders or creditors may be interested in determining whether they will be repaid money they have lent or may lend to the organization. Investors may be interested in comparing a potential investment in

Related Essays

Financial Ratios Essay

1415 words - 6 pages projects in the education, culture and arts sectors. The foundation was founded in 1992 by Asım Kocabıyık. The projects developed are in with environmental protection and sustainability of the global ecosystem. The foundation also has a loan facility that empowers women to set up businesses. The firm also has interests in the telecommunication sector. Liquidity ratios The liquidity ratios present the ability of the firm to satisfy its short-term

Financial Ratios Essay

1088 words - 5 pages Grade Received - "A" Choose 4 different financial ratios from your text, course materials, and/or Web resources. Answer the following questions: What do they tell you about a firm? Why is it important for a bank to understand these financial ratios? Why is it important for an investor to understand these financial ratios? Financial ratios are important when it comes to understanding the financial health of a company. My colleagues

Finance Ratios Essay

1097 words - 5 pages Profitability Ratios 1)ROCE: (prime ratio) basic measure of firm performance Ebit/Ta-CL 20% satisfactory. Investors can judge whether the investment is worthwhile. If low markets-sales decline, unit costs increased. Need to increase net profits without increasing cap. Employed. Reduce cost maintain sales Gross Profit Margin: Gross Profit/ Sales Revenue the higher the GPM the better Net Profit Margin Efficiency Ratios: operating

Ratios Tell Essay

974 words - 4 pages Ratios tell s a story Airline—Data 10 This set of date has a extremely high dividend payout ratio 332.6% although it has a very low ROS 0.1% and ROE 0.8%. Under this kind of situation this company could still pay dividends over three times to net income, meaning it is a company with strong financial background and enough retained earnings from previous years. An Airline company would normally has enough money to pay dividends even it is not