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.
PNRA had an Asset Turnover ratio of 1.75 in 2010 and it grew to 1.95 in the trailing twelve
This is an essential ratio which discloses about the liquidity position of a company. It is determined by dividing the current assets and current liabilities of the company. In this case, the Exxon’s current ratio is decreasing which indicates about the decreasing liquidity of the company. Current ratio of Chevron is far ahead than Exxon. This ratio is fluctuating for Chevron, but the fluctuation is minor and not drastic. Exxon ratios are fluctuating within 1.0 to 0.84, whereas Chevron ratio is always greater than 1.50. This clearly indicates that Chevron is in better position in meeting its obligations when compared to Exxon. If this decline continues for Exxon then there are chances where the company cannot meet up its short-term obligations and lead to financial distress.
From the table 3 it is indicated that the current ratio of British Petroleum is higher than one both in the recent financial statements i.e. of 2014 and in the financial statement of previous year i.e. of 2013. In 2013 the current ratio of British Petroleum is 1.33 which indicates that the company has sufficient current assets to satisfy it short term liabilities. However, the current ratio in 2014 is 1.37 (BP Global, 2014) indicating increase and depicting that is in position to satisfy its short term debts. Thus this indicates the strength of company in satisfying its debt.
The net income is very low too; it seems that it only rose twenty-thousand dollars. This could be due that; it is in a small market. It seems that additional income fell by a large amount. This country has no minority interest in their company. The operating income has risen over the years, but it has only risen two thousand dollars.
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.
Quick Ratio – Constant grow for the last three years. From 3.56 in 2001 to 3.76 in 2002 to 4.17 in 2003. The reason of grow is constant increase in Current Assets.
Cash Flow Statement Eastman Kodak’s cash flow statement shows that cash has decreased every year except for 2012 (Nasdaq, 2015). The reason for this is that the company sold $90,000 of its capital assets and also issued a large amount of debt (Nasdaq, 2015). In 2013 Kodak repaid $811,000 of their debt, this was different from any of the other years (Nasdaq, 2015). They may have done this since 2013 was the only year with a positive net income. Each year from 2011 to 2014, Kodak purchased capital assets (Nasdaq, 2015).
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
This chart shows the net revenues and net earnings for the years of 2013-2009. As you observe the net revenues have been consistent in the 18,000 for at least 3 years in a row. This is a good trend for the Kraft Food Group. The trend for the net earnings is sporadic. The net earnings is also called the bottom line. This shows the amount of money that is left over after paying all of the expenses. Kraft Food Group needs to cut down on its expenses.
The first analysis will be on Verizon. The current ratio and the debt to equity ratio both improved in 2006 when compared to 2005. However, the net profit margin dropped from 9.8% to 7.0%. What does this tell us as investors...
The Quick Ratio shows that the company’s cash and cash equivalents are the highest t...
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 gross profit margin is at 27% which is a percent higher than industry standards. The company is performing good and meeting industry standards in terms of cost of goods sold and sales volume. The net income margin decreased to 0.7% in 2003 a decrease of 0.3% compared to 2002.