1.What is Assets and Current Assets Definition Asset: In accounting terms, any tangible (physical resources) or intangible (nonphysical resources) that can be possessed or controlled to create positive monetary value is known as Asset. In other words, anything that can be transformed into cash value is termed as asset. This includes: • Real Estate Assets: Building, land and any other physical immovable structure. • Personal Assets: Substance that you claim which is not a genuine property, for
important in Zynga’s case mainly because Zynga does not have to maintain inventory. Inventory is an asset which normally must be floated with cash, which comes in part from collecting on Accounts Receivable. This is part of the cash conversion cycle. Zynga’s current accounts receivable management is also less important because accounts receivable is a very small portion of Zynga’s total current assets. Also, when Zynga’s products are sold online, cash payment is received instantaneously through one
the numbers show that Ajax electronics is struggling and always seemed lack of cash. Sales growth after 2000 were only 9%, which the average annual sale growth rates range from 10% to 30% in their industry. The lack of cash is explained by the current liquidity ratio
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
States. Assets, Liabilities & equities are measures as per the standards mentioned by the US GAAP. Company has used fair value measurement for certain assets and liabilities which as per the GAAP are required to be recorded in fair value on a recurring basis .Further some of the assets and liabilities are also recorded on fair value which comes under the category of non-recurring fair value measurement usually due to the impairment charges. Recording of Asset, Liabilities & Equity. Assets such as
Depreciation is the decline in the future economic benefits of a depreciable non-current asset through wear and tear and obsolescence. It is an allocation process. It can be calculated by two main methods, each reflecting in a distinct prospect in the way the asset is used. Depreciation is to be treated as an estimated expense that does not set aside cash for the replacement of a non-current asset. In determining the cost of acquisition of the lathes, any capital expenditure made must be added to
This is true with any company that wishes to gain shareholders and is common practice with organizations that after completing their financial calculations, turn the project over to human resources to enhance the beauty of the package. Coca-Cola’s current ratio, which “is a widely used measure for evaluating a company’s liquidity and short-term debt-paying ability”, dropped from 1.1:1 in 2004 to 1.04:1 in 2005. (Wegandt, Kimmel, & Kieso, 2008 p 707) This indicates a slight drop in Coca-Cola’s liquidity
Together both PepsiCo and Coca Cola are both companies that are known around the world for their goods. For decades now, these companies have been competitive against each other to “do better than” the other one, what some would call the “cola wars”. They individually offer a assortment of soft drinks; regular, diet, caffeine free and many other options for the public to choose from. Both of the companies also have quite a few different entities (or off springs) of their company, such as bottled
Financial Position are stated as a percentage of total assets and the accounts of the Income statement are expressed as percentages of revenues or sales. The important elements of
Liquidity:- Current=Current assets / Current liabilities. A company's current ratio measures its ability to pay its current debts, defined as those due within one year. It does so by comparing the company's current liabilities with its current assets, meaning those that can be converted to cash within a year or less. The formula is current assets divided by current liabilities. A value of 1 or higher is preferred. Many value investors consider 1.5 to be an ideal current ratio. Wal-Mart's current ratio
negative for company. Decreasing of the profit margin and ROE also is related to asset efficiency. Asset efficiency tests on efficiency of management in the used of assets to increase sales revenue, and it includes asset turnover. The asset turnover ratio decreased over the past four years as well (1300SMILES, n.d.). Since the company’s profit margin, ROE, and asset turnover fell down, the sales revenue per one dollar assets would go down. It would also hard for 1300SMILES to maintain a high degree of
categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantages of analyzing a balance sheet in this manner are that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes in one business (Weygandlt, Kimmel & Kieso 2008). The vertical analysis is correlated to the base amount in percentage, and the base amount is the total assets for each company
vertically at current assets and liabilities, of both companies so I can compare these figures between Coca-Cola and PepsiCo to find out who is in better current standing. Current assets Vs. Total Assets for PepsiCo: ( 2005) 10454/ 31727 = approx. 33% of total assets are current (2004) 8639/ 27987 = approx. 31% of total assets are current Now we will look at the current liabilities vs. total liabilities for PepsiCo (2005) 9406/ 17476 = approx. 54% of the total liabilities are current (2004)
Revenues have been increasing each year since before 1996 with profits coming from product line of automobiles and motorcycles. In 2001, BMW came out with a new product group, the Mini. The Mini also contributed to the revenue increase in 2001. BMW has current developments in their sports cars, the Z8. BMW has created a trustworthy name for the automobiles they produce and has all the potential to continue their success in the future. Audi, one of Germany’s first automobile producers, has been designing
comparing both of these companies I have evaluated the net revenue and net income for the period of 2003 to 2005, with 2003 being the base year and 2005 being the current year. The formula I have used will show the change in the net revenue and net income for this span of time. The formula to calculate the change since the base period is the current year amount minus the base year amount divided by the base year amount. COCA-COLA (dollar amounts in millions) Net Revenue 23,104(2005) – 20,857(2003)
The asset activity ratios take a look at Nike’s ability to convert different accounts into cash or through sales. The asset activity ratios are used to measure Nike’s relative efficiency of based on its use of its assets. The first ratio to look at is the inventory turnover ratio which shows how many times a company’s inventory is sold and then replaced over a
means the expense related to raw materials, labor and manufacturing fixed assets which use to generate profit. The gross profit margin number appears
For many ratios, including the quick ratio and current ratio, there has been a decline in 2014 alone. As an investor this would be a good sign to wait until another set of financial statements are available. While many of these
use their internal funds instead of external finance because it helps the company to save cost. Expenses such as origination fees and interest are avoided. There are several types of internal funds such as retained profit, working capital, sale of assets and depreciation (McMahon, 2014) Retained Profit Definition: It is a part of the net profit which is seen in the income statement. This profit will be put back into the company. Retained profit is restored into the company. It can be seen under the
accounting transaction to be measured at its historical costs. Historical cost can be defined as a degree of value utilised in accounting in which the cost of an asset is based on the original price when the asset is obtained by the organisation. For instance, 200 units of an item were bought two months back that cost $10 per unit. However, the current price is $12 per unit. Hence, the inventory will show at a cost of $2000 instead of $2400 on balance sheet. The advantage of employing historical cost is