Balance sheet ratio analysis

Balance sheet ratio analysis Balance Sheet Ratio Analysis Important Balance Sheet Ratios measure liquidity and solvency (a businesss ability to pay its bills as they come due) and leverage (the extent to which the business is dependent on creditors funding). They include the following ratios: Liquidity Ratios These ratios indicate the ease of turning assets into cash. They include the Current Ratio, Quick Ratio, and Working Capital. Current Ratios.The Current Ratio is one of the best known measures of financial strength. It is figured as shown below: Total Current Assets Current Ratio = ____________________ Total Current Liabilities The main question this ratio addresses is: Does your business have enough current assets to meet the payment schedule of its current debts with a margin of safety for possible losses in current assets, such as inventory shrinkage or collectable accounts? A generally acceptable current ratio is 2 to 1. But whether or not a specific ratio is satisfactory depends on the nature of the business and the characteristics of its current assets and liabilities. The minimum acceptable current ratio is obviously 1:1, but that relationship is usually playing it too close for comfort. If you decide your businesss current ratio is too low, you may be able to raise it by: Paying some debts. Increasing your current assets from loans or other borrowings with a maturity of more than one year. Converting non-current assets into current assets. Increasing your current assets from new equity contributions. Putting profits back into the business. Quick Ratios.The Quick Ratio is sometimes called the acid-test ratio and is one of the best measures of liquidity. It is figured as shown below: Cash + Government Securities + Receivables Quick Ratio = _________________________________________ Total Current Liabilities The Quick Ratio is a much more exacting measure than the Current Ratio. By excluding inventories, it concentrates on the really liquid assets, with value that is fairly certain. It helps answer the question: If all sales revenues should disappear, could my business meet its current obligations with the readily convertible `quick funds on hand? An acid-test of 1:1 is considered satisfactory unless the majority of your quick assets are in accounts receivable, and the pattern of accounts receivable collection lags behind the schedule for paying current liabilities. Working Capital.Working Capital is more a measure of cash flow than a ratio. The result of this calculation must be a positive number. It is calculated as shown below: Working Capital = Total Current Assets Total Current Liabilities Bankers look at Net Working Capital over time to determine a companys ability to weather financial crises. Loans are often tied to minimum working capital requirements. A general observation about these three Liquidity Ratios is that the higher they are the better, especially if you are relying to any significant extent on creditor money to finance assets. Leverage Ratio This Debt/Worth or Leverage Ratio indicates the extent to which the business is reliant on debt financing (creditor money versus owners equity): Total Liabilities Debt/Worth Ratio = _______________ Net Worth Generally, the higher this ratio, the more risky a creditor will perceive its exposure in your business, making it correspondingly harder to obtain credit. To financial ratio analysis Top Income Statement Ratio Analysis The following important State of Income Ratios measure profitability: Gross Margin Ratio This ratio is the percentage of sales dollars left after subtracting the cost of goods sold from net sales. It measures the percentage of sales dollars remaining (after obtaining or manufacturing the goods sold) available to pay the overhead expenses of the company. Comparison of your business ratios to those of similar businesses will reveal the relative strengths or weaknesses in your business. The Gross Margin Ratio is calculated as follows: Gross Profit Gross Margin Ratio = _______________ Net Sales (Gross Profit = Net Sales Cost of Goods Sold) Net Profit Margin Ratio This ratio is the percentage of sales dollars left after subtracting the Cost of Goods sold and all expenses, except income taxes. It provides a good opportunity to compare your companys return on sales with the performance of other companies in your industry. It is calculated before income tax because tax rates and tax liabilities vary from company to company for a wide variety of reasons, making comparisons after taxes much more difficult. The Net Profit Margin Ratio is calculated as follows: Net Profit Before Tax Net Profit Margin Ratio = _____________________ Net Sales Management Ratios Other important ratios, often referred to as Management Ratios, are also derived from Balance Sheet and Statement of Income information. Inventory Turnover Ratio This ratio reveals how well inventory is being managed. It is important because the more times inventory can be turned in a given operating cycle, the greater the profit. The Inventory Turnover Ratio is calculated as follows: Net Sales Inventory Turnover Ratio = ___________________________ Average Inventory at Cost Accounts Receivable Turnover Ratio This ratio indicates how well accounts receivable are being collected. If receivables are not collected reasonably in accordance with their terms, management should rethink its collection policy. If receivables are excessively slow in being converted to cash, liquidity could be severely impaired. The Accounts Receivable Turnover Ratio is calculated as follows: Net Credit Sales/Year __________________ = Daily Credit Sales 365 Days/Year Accounts Receivable Accounts Receivable Turnover (in days) = _________________________ Daily Credit Sales Return on Assets Ratio This measures how efficiently profits are being generated from the assets employed in the business when compared with the ratios of firms in a similar business. A low ratio in comparison with industry averages indicates an inefficient use of business assets. The Return on Assets Ratio is calculated as follows: Net Profit Before Tax Return on Assets = ________________________ Total Assets Return on Investment (ROI) Ratio. The ROI is perhaps the most important ratio of all. It is the percentage of return on funds invested in the business by its owners. In short, this ratio tells the owner whether or not all the effort put into the business has been worthwhile. If the ROI is less than the rate of return on an alternative, risk-free investment such as a bank savings account, the owner may be wiser to sell the company, put the money in such a savings instrument, and avoid the daily struggles of small business management. The ROI is calculated as follows: Net Profit before Tax Return on Investment = ____________________ Net Worth These Liquidity, Leverage, Profitability, and Management Ratios allow the business owner to identify trends in a business and to compare its progress with the performance of others through data published by various sources. The owner may thus determine the businesss relative strengths and weaknesses. Return on Equity(ROE,Return on average common equity,return on net worth,Return on ordinary shareholders funds) (requity) measures the rate of return on the ownership interest (shareholders equity) of the common stock owners. It measures a firms efficiency at generating profits from every unit of shareholders equity (also known as net assets or assets minus liabilities). ROE shows how well a company uses investment funds to generate earnings growth.

Jane Austens Emma - Rebel or Conformist? Essay -- Austen Emma Essays

Emma - Rebel or Conformist?    Near the town of Highbury, a village located in the eighteenth century English countryside, sits the estate of Hartfield where Emma Woodhouse resides with her health conscious father who finds fault with all of life's necessities. When Emma's governess and close comrade, Miss Taylor, marries Mr. Weston, an affluent neighbor, and moves to his nearby estate, sociable Emma is forced to find herself a new companion. Harriet Smith, a naive teen who lives at Mrs. Goddard's boarding school, though of a lower class due to her illegitimacy, seems desperately in need of Emma's management and counsel. Sure that she was the cause of the perfect match between Miss Taylor and Mr. Weston, Emma is determined to find an equally exceptional match for Harriet. The young rector, Mr. Elton, seems the perfect candidate for a future husband, and Emma sets out to match her new friend with the young clergyman. The imaginative Emma views Mr. Elton as falling deeply in love with Harriet and greatly encourages Harriet's feelings for him to inflame. When an old friend of Harriet's, Robert Martin, who is equal to her in social status, sends her a marriage proposal, Emma quickly discourages it and helps Harriet write the letter of refusal. Mr. Knightely, Emma's neighbor and close friend is greatly disappointed by this action and tells Emma that Harriet made a formidable mistake in refusing such an offer. Emma does not care for this response for in her eyes Mr. Elton's feelings for Harriet are blossoming beautifully and are quickly being reciprocated. On the eve of a dinner held at the Weston's estate, Harriet comes down with a cold and Emma is disappointed in Mr. Elton's lack of sympathy for the invalid. The sno... ...y were so rigid of structure that a person's respectability was tarnished if they broke one of the standards. Emma Woodhouse tries to defy some of these codes, but finds that it is much easier to live up to the standards society determines. Works Cited and Consulted Austen, Jane. Emma. Ed. Stephen M. Parrish. New York: W.W. Norton & Company, Inc. 1993. Brown, Julia Prewitt. â€Å"Civilization and the Contentment of Emma.† Modern Critical Views: Jane Austen. Ed. Harold Bloom. New York: Chelsea House Publishers, 1986. 87-108. Johnson, Claudia L. â€Å"’Not at All What a Man Should Be!’: Remaking English Manhood in Emma.† Equivocal Beings: Politics, Gender, and Sentimentality in the 1790s. Chicago: U of Chicago P, 1995. 191-203. Litz, A. Walton. "Limits of Freedom: Emma" Emma. 1972. Norton Critical ed. New York, NY: W.W. Norton & Company, 1993, 369-377

Opinions of Radical Environmentalism :: Environmental Beavers Wildlife Essays

Opinions of Radical Environmentalism The two articles I am going to look at are Radical Environmentalists vs. the Beavers by Jack Alan Brown Jr. and Environmentalists are Mean Green Joes by F.R. Duplantier. Radical Environmentalism is now a common term in our vocabulary. When you here the term what do you think about? I think about all the things that the environmentalists talk about and all the ideas brought to the table, good and bad. In the two articles I read they are both on the same subject of Environmental issues. The first author Jack Alan Brown Jr. is not against the environmentalism but feels that we have to do something to farther the advance of human kind. The second author F.R. Duplantier topic is â€Å"Do environmentalists really love nature, or do they just hate people†(p.1)? A combination of the author’s opinions would give you my thesis. For the advance of the human culture to take place, nature is going to have to help by giving the humans the resources available in nature. In the first article the author is presenting the idea of what the beavers do to the rivers and how they work together to get things done. The author is relating the beavers, a fuzzy, nice looking animal, in an attempt to get an emotional response. This author is making the other view on dams, look like they are the bad guys because if the beavers do it why cannot the people do it. The author says, â€Å"[Beavers] They alter the wet lands wherever they go†(p.1). The author is comparing the humans building of dams and the beavers building of dams. However the author is using a small scale comparing it to a big scale, but you can easily see his point. Brown’s sentence structure flows very nicely and does use nice sentence structure making it clean for everyone to understand. The points are all very clear and direct. The author does this in order to make sure that there is no confusion between what is being said and what is being understood. From the beginning of the essay you know what the author’s viewpoint on the subject is. The thesis in the beginning is a very clear on that. The author, Duplantier is very straightforward. This author uses many quotes to reinforce the point of his writing. â€Å"The goal of environmentalists is to protect nature, not for man, but from man†(p.

Stoppards Rosencrantz and Guildenstern are Dead and Vonneguts Slaughterhouse-Five :: comparison compare contrast essays

Stoppard's Rosencrantz and Guildenstern are Dead and Vonnegut's Slaughterhouse-Five That we, people, are "bugs in amber" is one of the main themes of Kurt Vonnegut's novel Slaughterhouse-Five; or Children's Crusade. Tom Stoppard's play Rosencrantz and Guildenstern are Dead is, in my opinion, very similar to this book. While Slaugterhouse-Five is an American novel, a mixture of the author's Second World War experiences and science fiction genre, Rosencrantz and Guildenstern are Dead is a British play set into William Shakespeare's Hamlet. What are these two literary works similar in, then? It is the central theme. Both works show that we are physically stuck in this world, our future is already given, and we have no way of escaping our destiny. Both writers provide a little room for their character's imagination which is, in my opinion, crucial item of both literary works. In this paper I will try to use Kurt Vonnegut's novel to help me point out the major theme of Rosencrantz and Guildenstern are Dead and to explain and clarify the theme's meaning and main message. The main theme of Slaughterhouse-Five is expressed several times throughout the novel. One of the examples is the passage which shows (from the view of the Tralfamadorians -- alien beings) that the future is given and that one cannot change it. "All moments, past, present, and future, always have existed, always will exist. The Tralfamadorians can look at all the different moments just the way we can look at a stretch of the Rocky Mountains, for instance." (Vonnegut:27) Another passage of the novel describes the theme more directly. It is the part when the Tralfamadorians kidnap Billy Pilgrim and he asks "why?". "Have you ever seen bugs trapped in amber? Well, here we are, Mr. Pilgrim, trapped in the amber of this

Mannerism Artist

Mannerism appeared in response to the Renaissance style from Florence, Rome and Venice in the 1520’s. Unlike Renaissance artists to strove to make their art look as realistic as possible, mannerism artists broke away from this convention. Some of these key characteristics include abnormally elongated limbs, contorted bodies impossible poses and most importantly, artifice. Renaissance artists tried to disguise artifice where mannerism artists reveal imbalanced compositions, ambiguous space, departures from expected conventions and unique presentations of traditional themes (Gardner 612).There are great examples in paintings, sculptures and architecture that utilize these characteristics and give us a better understanding of what mannerism truly is. There were many influential painters in the 1500’s that took advantage of the freeing style of mannerism. One artist who stands out is Jacopo Da Pontormo. His piece, Entombment of Christ, (Capponi Chaple, Santa Felicita, Flora nce Italy, 1494-1557) embodies almost all of the characteristics assigned to mannerism.Christ’s decent from the cross-had been frequently portrayed by many artists before him. However, Pontormo took a different approach from his processors. Pontormo changed his picture plane from the traditional perpendicular plane by rotating image along a vertical axis. Because of this, the Virgin Mary falls away from the viewer as she releases her son’s hand (Kleiner 613). Another striking difference is how he positions the characters so there is an intentional void in the middle of the painting.How the bodies and limbs moves around the center accentuate the void. Also, the elongated limbs and bodies positioned in a contorted fashion depict the key characteristics of the style. For example, the figure holding Christ on his back has an elongated torso that does not seem to be anatomically possible. This painting gives the viewer an excellent example for how Pontormo and other manneri sm artist’s have split ways with the natural, realistic, and balanced principles of the Renaissance artists.The mannerism style can be seen across other mediums as well. Other artists took these new principles and incorporated them into sculpture. Giovanni da Bologna’s (born, Jean de Boulogne) Abduction of the Sabine Women, (Loggia dei Lanzi, Piazza della Signoria, Florence, Italy, 1579-1583) epitomizes the principles of figure composition for Mannerists. As seen by Pontormo, this piece is also created on a vertical axis. The bodies create a vertical, almost flame-like spiral movement. This sculpture was the first large-scale group since classical antiquity designed to be seen from multiple viewpoints†¦ † (Kleiner 619). Because of this, the piece changes immensely depending on where the viewer is standing. The figures also display extreme emotion that was not common before this period. For example, you can almost feel the woman figure’s pain and angui sh by her face, and how she is trying to break away from the young male figure. Mannerism also translates into the medium of architecture.This style of architecture also challenged the classical elements of balance, order and stability that were prominent in the Renaissance. Giulio Romano ended up being the leading architect in Mannerism. An example of his work would be the Palazzo del Te, Mantua, Italy, 1525-1535. The viewer can see his Mannerist style in the facades that face the interior courtyard. The deviation from the conventional architecture of the time is pronounced by revealing the artifice of the palace design. The keystones for example, either have fully settled or seem to be slipping from the arches-and, more eccentric still, Giulio even placed voussoirs in the pediments over the niches, where no arches exist† (Kleiner 620). The building is full of structural oddities and contradictions. For example, the architraves holding the columns up don’t look strong enough to support the building, giving the viewer the illusion that the building may come crashing down at any time.In conclusion, the mannerism style broke away from the conventional Renaissance style of order, balance and realistic paintings. It focused more on the artifice, elegant style and showing emotion through the figures. Although Mannerism did not last long, I believe this style of art helped artists break away from the strict rules of its predecessors and let the artist be free to express more emotions and to retell stories in a different way. Sources: Kleiner, Fred S. , and Helen Gardner. Gardner's Art through the Ages: A Global History. Boston, MA: Thomson/Wadsworth, 2009. Print.

Cheating and plagiarism for my religion class Essay

The movie we watched was very interesting. I felt like I could definitely relate to most of the situations they brought up. In particular, the point about how you felt the need to cheat nowadays to keep up with the cheaters. Their information was very accurate and it really gives you a look into what life is like as a student. When watching it I really felt like what they were saying was pro-cheater. The only problem with the movie was the give a lot of great reasons why there is such a high percentage of cheaters out there, but the never offered any ways to fix the problem. Then the movie switched to the problem of plagiarism. They addressed the issue and showed some of the difficulties of trying to detect it. They then went into the only way of detecting it and how to avoid detection. Afterward they showed an example of a class and how bad plagiarism has gotten. Still they never offered any way to solve the problem. I really enjoyed the movie we watched in class it was very interesting. Through out the movie I felt could relate to the students telling their experiences. For example, one girl talked about how she feels the need to cheat to keep up with all the other cheaters out there. From my experience, I have tried studying long hours for tests and then going in the next day, taking the test and then having the person next to me cheat and get a higher grade. I myself cheat because nowadays it is all about grades and getting into the best colleges and getting the highest grade point average (g.p.a.), and with out a good g.p.a., you cannot get into a good college. So to get into a good college and get a good paying job some people are willing to do what ever it takes and to keep up with them we have to do the same things. Through out the movie I got the sense that they were taking a pro-cheater standpoint. I noticed that they really didn’t show you anyone who got anywhere in life by not cheating and so I got the feeling that they wanted us to walk away with better knowledge and methodologies on how to cheat. By the end of the movie, I really felt like cheating was no longer a bad thing and in fact it had actually become almost necessary to succeed in life and everyone is doing it. They also gave only examples of people who cheat all the time and easily get away with it. Once again, they never offered any solution to the problem. Next, they talked about plagiarism. They did an experiment with a World History class and had the kids write a paper on their favorite explorer. Then the teacher took all the papers and used the one tool out there that can check for plagiarism, turnitin.com. She submitted all the papers to this website and got them back with all the plagiarized portion of each students paper underlined. When she got the papers back, more than half the papers were plagiarized and some only had a few original sentences. It just goes to show how big of a problem plagiarism is these days. Then they said that the website only detects plagiarism if eight of the words are an exact match so to avoid detection all you have to do is change every eighth word and to be on the safe side you could play around with that number. Even though the movie never offered any way of solving either problem, they still informed you of the problem. I really enjoyed the movie. I left wanting to cheat and plagiarize. In the movie, they talked about a person who would write papers for you for $25 a page. Though I don’t know anyone that would do that for me, if I did, after watching the movie, I probably would have enlisted for his help. However, I don’t know anyone who would so I guarantee that this paper is completely original.

Great Filipino Music Artists (80’s †Present) Essay

Basil Valdez Like many Filipino singers in the 1970s, Valdez started solo on his career as a folk singer. In 1972, he joined the Circus Band and after it was disbanded, he released Ngayon at Kailanman, his first solo album. In the Circus Band, he met Ryan Cayabyab, who was then part of other band. When Valdez was preparing his album Ngayon at Kailanman, he asked Cayabyab to give a few songs, he did. Cayabyab stands as Valdez’s musical director for 27 years. In the 80’s, Valdez republished himself as a singer of movie theme songs; some of them are â€Å"Paano Ba Ang Mangarap,† â€Å"Muling Buksan Ang Puso† and â€Å"Paraisong Parisukat.† A circumstance which sidelined his singing career occurred in 1990, when he found himself as a â€Å"healer†. Valdez then sought the guidance of his Jesuit friends. They explained to him that he has gift of healing. Ryan Cayabyab A great Filipino music artist known as the Executive and Artistic Director of the defunct San Miguel Foundation for the Performing Arts. He was also a resident judge for the solo season of Philippine Idol in 2006. A versatile artist with his works ranging from commissioned full-length ballets, theater musicals, choral pieces, a Mass set to unaccompanied chorus/congregation, and orchestral pieces, to commercial recordings of popular music, film scores and television specials. Cayayab’s current project includes the Ryan Cayabyab Singers (RCS), a group of seven young adult singers comparable like his group Smokey Mountain in the early ’90s. After FreemantleMedia decided not to renew the Philippine Idol franchise, Cayabyab decided to transfer to rival show Pinoy Dream Academy (Season 2), replacing Jim Paredes as the show’s headmaster. PDA 2 started on June 14, 2008. Nonoy Zuà ±iga Nonoy Z’s singing career spans more than 3 decades; as a folksinger from 1971 to 1975 and then as one of the lead singers of the Family Birth Control Band  which performed in the best nightspots and hotels like Philippine Plaza, Holiday Inn and the Manila Hotel from 1975-1980. To hone his skill, he took special voice training from the late Aurelio Estanislao, a well-known tenor singer and music-voice professor at the University of the Philippines. With his clear baritone voice he started to attract the attention of music buffs. His style and rendition of different songs especially love songs made him acquire a number of distinct awards, Bayang Barrios Lumad origin, born on June 12, 1986. A Filipino musician who hails from Bunawan, Agusan del Sur, and is known for her use of indigenous instruments and styles. In 2005, Barrios’ song Isipin Mo Na Lang was used in end credits of the indie Filipino film Ang Pagdadalaga Ni Maximo Oliveros (The Blossoming of Maximo Oliveros). In September 2008, she launched her fourth album entitled â€Å"Biyaya†. Ramon Jacinto Jacinto has always tried to put music and business together. He started to enter the world of entrepreneurship at the young age of 15. He built up his first enterprise called RJ Enterprises, a company which dealt with producing and release records. RJ Enterprises pioneered multi-track recording in the country and eventually became the primary studio choice for many artists and advertising agencies at that time. Two years later, Jacinto ventured to establish what would become a legendary radio station in the Philippine broadcasting industry – DZRJ. It served as a venue for on-air experiments of radio concepts which were never heard before in Philippine entertainment history. Manned by students, mostly coming from Jacinto’s high school class, the radio station introduced alternative music to the Filipino youth. It was the first station to play songs from rock legends such as the Beatles, the Ventures and the Beachboys. The radio station also gave emphasis on playing the music of local talent. Apart from DZRJ, Jacinto also established the now defunct, DZUW. Pepe Smith a Filipino singer-songwriter, drummer, and guitarist. More commonly known alternately as Joey Smith and Pepe Smith, he is an icon of original Filipino rock music or â€Å"Pinoy Rock†. Gary Valenciano Born 6 August 1964, better known as Gary Valenciano or Gary V., is a Filipino musician. Also known as Mr. Pure Energy, Valenciano has released 26 albums, and won the Awit Awards for â€Å"Best Male Performer† eleven times. In 1998, he became UNICEF Philippines first National Ambassador. His most notable songs include â€Å"Di Bale Na Lang† (â€Å"Never mind†), â€Å"Eto Na Naman† (â€Å"Here we go again†), â€Å"Sana Maulit Muli† (â€Å"Hope it repeats again†), â€Å"Natutulog Ba Ang Diyos?† (â€Å"Does God sleep†), â€Å"Gaya ng Dati† (â€Å"Just like before†), â€Å"Pasko Na, Sinta Ko† (â€Å"It’s Christmas already, my love†), and â€Å"Narito† (â€Å"Here†). He is currently part of ABS-CBN contract actors, and is frequently tapped to sing theme songs for the network’s soap operas and films. Fr. Eduardo Hontiveros Fr. Honti, as he is fondly known, was educated at the Capiz Elementary School and the pre-war Ateneo de Manila in Padre Faura, graduating from high school in 1939. From 1939 to 1945 he was at San Jose Seminary. He entered the Society of Jesus after the war in 1945, pronouncing first vows at Sacred Heart Novitiate in Novaliches in June 1947. He finished his studies of philosophy there and then proceeded to Ateneo de Zamboanga for his three-year regency, teaching religion, Latin, and English, and moderating the Choir String Band. In 1951, he traveled to the United States to study theology, and was ordained in 1954 by Francis Cardinal Spellman. After earning a doctorate in theology from the Gregorian University in Rome, he returned to teach in the Philippines in 1958. He pronounced final vows in the Society of Jesus in 1960. Fr. Honti’s initiatives have been recognized with the Ateneo de Manila University’s Tanglaw ng Lahi Award (1976), the Asian Catholic Publishers’ â€Å"Outstanding Catholic Author† (1992), and the Papal award Pro Ecclesia et Pontifice (2000), among many other awards and citations. He suffered another major stroke in early January 2008, and died  on January 15th. At his funeral Mass at the Ateneo’s Church of the Gesu, President Gloria Macapagal-Arroyo was present to honor him with the Presidential Medal of Merit (awarded posthumously). Fr. Manoling Francisco Fr. Manoling Francisco SJ entered the Society of Jesus after second year in college in 1985. As a child he had aspired to be a concert pianist; nevertheless he decided to discontinue his classical piano training at the age of 14 to devote his time to school and socio-civic activities. It was in his First Year High that he composed Hindi Kita Malilimutan. has been popularized by Mr. Basil Valdez. During the past 17 years he has composed more than a hundred and fifty songs such as Tanging Yaman, Sa ‘Yo Lamang are being sung all over the country – indeed, whatever there are Filipinos gathered together in prayer and liturgical celebration. Today, he is easily one of the most gifted musicians in the country.