Task 319.1.2-04, 2.1-01-03
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- Date Submitted: 03/08/2014 08:25 AM
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DATE: January 8, 2014
TO: CEO - Company G
FROM: Alexandria S. Williams
RE: Analysis of financial statements for 2011 and 2012.
Current Ratio: is a liquidity ratio that assesses a business's aptitude to remunerate temporary indebtedness. The company current ratio for year 12 is 1.77. However, the present ratio 1.77 for year 12 contrasted to 1.86 year 11’s ratio; one can perceive that the ratio has decrease marginally. Once contrasted to the industry quartiles the relative amount plunged beneath 3.1 quartile, also plummeting beneath quartile 2.1 but higher than quartile 1.4. Therefore, this is a weakness and displays an emerging problem. For the reason, one could be investing the surplus currency into other areas.
Acid Test Ratio is a stringent marker that ascertains if a company has sufficient temporary capitals to protect its immediate legal responsibility without vending inventory. The company acid test ratio for year 12 is .44. However, the relative amount .44 for year 12 contrasted to .64 year 11’s ratio; one can perceive that the ratio has decreased marginally. Once contrasted to the industry quartiles the relative amount plunged beneath quartile 1.6, also plummeting beneath quartile .9, and beneath quartile .6. This is a weakness in addition to the ratio displaying a threat with aptitude to protect its immediate liabilities.
Inventory Turnover: is a ratio that display how many times a business's inventory is vended and substituted throughout a period. However, the spreadsheet displays a turnover of 5.2 days for year 12, which makes it a rapid turnover. Nevertheless, the present turnover ratio 5.2 for year 12 contrasted to 6.1 year 11’s relative amount; one can perceive this turnover ratio has plunged marginally. Once contrasted to the industry quartiles the relative amount plunge lower than quartile 13, in addition to plummeting lower than quartile 10.3, and lower than quartile 8.3. Finally, the relative amount indicates weakness.
Accounts Receivable...
TO: CEO - Company G
FROM: Alexandria S. Williams
RE: Analysis of financial statements for 2011 and 2012.
Current Ratio: is a liquidity ratio that assesses a business's aptitude to remunerate temporary indebtedness. The company current ratio for year 12 is 1.77. However, the present ratio 1.77 for year 12 contrasted to 1.86 year 11’s ratio; one can perceive that the ratio has decrease marginally. Once contrasted to the industry quartiles the relative amount plunged beneath 3.1 quartile, also plummeting beneath quartile 2.1 but higher than quartile 1.4. Therefore, this is a weakness and displays an emerging problem. For the reason, one could be investing the surplus currency into other areas.
Acid Test Ratio is a stringent marker that ascertains if a company has sufficient temporary capitals to protect its immediate legal responsibility without vending inventory. The company acid test ratio for year 12 is .44. However, the relative amount .44 for year 12 contrasted to .64 year 11’s ratio; one can perceive that the ratio has decreased marginally. Once contrasted to the industry quartiles the relative amount plunged beneath quartile 1.6, also plummeting beneath quartile .9, and beneath quartile .6. This is a weakness in addition to the ratio displaying a threat with aptitude to protect its immediate liabilities.
Inventory Turnover: is a ratio that display how many times a business's inventory is vended and substituted throughout a period. However, the spreadsheet displays a turnover of 5.2 days for year 12, which makes it a rapid turnover. Nevertheless, the present turnover ratio 5.2 for year 12 contrasted to 6.1 year 11’s relative amount; one can perceive this turnover ratio has plunged marginally. Once contrasted to the industry quartiles the relative amount plunge lower than quartile 13, in addition to plummeting lower than quartile 10.3, and lower than quartile 8.3. Finally, the relative amount indicates weakness.
Accounts Receivable...