(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Financial Statement Analysis

Both current ratios are quite healthy though when compared to others in the industry. .
             Another measure of a company's ability to pay back loans, this time over a long period, measures solvency. Coca-Cola's debt to total assets ratio is 35% in 2004 and 33% in 2005 compared to PepsiCo's less attractive ratio of 52% in 2004 to 55% in 2005. Coca-Cola's debts represent a healthy percentage of assets and in this case the lower the number the better. Coca-Cola's debt to total assets ratio decreased by 2% from 2004 to 2005 while PepsiCo's ratio increased by 3%. Were a potential lender or investor to look at these numbers alone they would prefer the performance of Coca-Cola over PepsiCo but there are still many calculations to be made and factors to consider. .
             Another solvency ratio that measures a company's ability to survive over a long period is the long-term debt to networking capital ratio. In this formula one subtracts current liabilities from current assets and then the total is divided by the total by long-term debt obligations. This formula provides insight into an organization's ability to pay back long-term debt and interest. According to numbers from Appendix B Coca-Cola's ability to pay back long-term debt after liabilities is subtracted from assets in 2004 is 1.01:1 and increases to 2.79:1 in 2005. This is an attractive number that reflects an increase in ability to pay back long-term debt by 1.78 from 2004 to 2005. According to Appendix A PepsiCo's ability to pay back long-term debt after current liabilities are taken from current assets is -.72:1 in 2004 and -.51:1 in 2005. Although the risk decreases .21 from 2004 to 2005 the negative number may frighten investors or lenders as the denominator in the fraction that determines the solution (current assets less current liabilities) is negative. I would expect stronger numbers were I to consider investing in a company. Coca-Cola's long-term debt to networking capital ratio shows improvement of an already strong number.


Essays Related to Financial Statement Analysis

1. Financial Analysis

Financial Statement Analysis Project The two companies that I will be comparing in this project are McDonalds and Wendy's. ... Im using the information from their 2001 Financial Statements. ... Ive also heard that its one of the only pieces of info on the front page of a financial statement. ... This project has helped me understand essentially why financial statements are analyzed. ... With these simple and appropriate ratios, it's easy for a potential investor to develop a general framework that can be used to conduct a comprehensive financial analysis. ...

  • Word Count: 1615
  • Approx Pages: 6
  • Grade Level: High School

2. Financial analysis

Investment decisions are assisted by two major schools of stock analysis: fundamental analysis and technical analysis. ... It involves the use of financial statements to determine a company's financial strength and whether the company's stock is valued correctly. ... One of the most well-known ideas in fundamental analysis is "Top-Down" analysis. ... Technical analysis pays no attention to financial statements. ... I feel more comfortable using the financial statements to predict how well a company is going to perform, maybe with a little bit of technical analysis involved, but...

  • Word Count: 379
  • Approx Pages: 2
  • Grade Level: Undergraduate

3. Financial Analysis of Best Buy

This paper is going to be an analysis of Best Buy, Inc.'... Their opinion on the financial statements of the company will be discussed. ... There will be a discussion on how this will impact Best Buy financial statements. ... An Analysis of the Financial Statement of Best Buy The accounting firm of Deloitte & Touche has finished their audit of Best Buy for 2012. ... For the most part, D&T agrees with Best Buy on its numbers and its calculations on its financial statements. ...

  • Word Count: 2234
  • Approx Pages: 9
  • Has Bibliography
  • Grade Level: High School

4. Montreal Museum of Fine Arts - Financial Analysis

The purpose of our analysis was to evaluate the financial position of your organization, assess its resources and determine challenges it may encounter while trying to achieve its mission. ... Auditor's Opinion Although the audited financial statements of the museum's foundation were presented with the financial statements of the MMFA, our analysis only focused on the latter. ... The museum follows the fund accounting method for financial statement presentation purposes. ... Notes to the Financial Statements The purpose of the notes to the financial statements is to provide additi...

  • Word Count: 3109
  • Approx Pages: 12
  • Has Bibliography
  • Grade Level: Undergraduate

5. Bank of America/US Bank Financial Analysis

The financial analysis of the bank is a descriptive analysis of the financial performance of the bank that helps to evaluate the performance of the given entity. The banks financial statements are a different type of problem when compared to the other manufacturing companies. ... In order to analyze the financial performance of the banks an income statement and a balance sheet for the two banks over the same financial year was prepared and attached to this document to help in important calculations. ... In order to analyze appropriately the financial statement and the value of the bank, these ...

  • Word Count: 1429
  • Approx Pages: 6
  • Has Bibliography

6. finacial statement analysis

By critically analyzing their financial and accounting information primarily from 2001/2002 the annual financial reports and relevant available sources, this report is to assess and compare the financial situations of both companies which focus on five areas in terms of financial measurement: Liquidity and Short-term Solvency, Operating Efficiency, Capital Structure and Long-term Solvency, Profitability and Return on Investors. ... Overview on Background 3 3 Financial Analysis 4 3.1 Liquidity and Short-term Solvency 4 3.2 Capital Structure and Long-term Solvency 5 3.3 Operating...

  • Word Count: 4837
  • Approx Pages: 19

7. Financial Analysis Of Banking System

Financial Analysis 3.1 - Profitability Analysis .. 3.2 - Financial Stability .. 3.3 - Liquidity Analysis .. 3.4 - Cash Flow Analysis 5 9 10 14 3. ... (Westpac Annual Financial Report, 2002, p. 156). ... (Westpac Annual Financial Report, 2002, p. 155). ... FINANCIAL ANALYSIS 3.1 - Profitability Analysis Firstly we will compare Westpac's performance to its own previous results, profit has increased steadily from $1272 million dollars in 1998 to $2192 million dollars at the end of the financial year 2002...

  • Word Count: 2670
  • Approx Pages: 11
  • Has Bibliography
  • Grade Level: High School

8. Financial Reporting Analysis Paper

We are going to take many different ratios and apply them to financial analysis of the company, Amazon. ... In general, a higher current ratio indicates a stronger financial position. ... This ratio appeared on Amazon's income statement only. ... On the financial statements for Amazon it shows a high price earnings ratio which indicates a strong market expectation for future earnings for them. ... To conclude with our financial statement analysis of the company, Amazon. ...

  • Word Count: 1183
  • Approx Pages: 5

Got a writing question? Ask our professional writer!
Submit My Question