Liquidity Measurement Ratios

TESTS , the basic findings to be focused are the ratio analysis to generate company’s profitability, liquidity and asset management. First of all let us focus on the liquidity measurement ratios that proves company’s solvency In repaying debts and other liabilities. In comparison of 2013 & 2014, the Interpretation from current ratio can be drawn as higher the current ratio higher the capability of paying obligations. Here in our study the current ratio In 2013 Is less than 1 that Indicates the company has problems of paying.
Comparatively In 2014 the ratio Is greater than 1 . The indication Is quite good. The quick ratio meets company’s short term liabilities. The higher the ratio, higher the company’s ability for repaying short term liableness. Here for both the year 2013 the quick ratio In associate with the current ratio Is almost zero. It has negative effect on company but for 2014 the quick ratio Is better. It Indicates company Is In good liquidly position and It has 2. 5 lulls assets to cover its current liability. Now In the phase of profitability analysis return on asset is better in 201 3 than 2014. E higher return on asset Shows Company earning more with less investment. If we look at the return on capital employed the 2014 data shows higher value than the 2013. It signifies company is employing its capital appropriately and generating shareholders value. From the above discussion we can conclude company’s position from 2013 to 2014 is better irrespective of its solvency and capital generation as well as profitability growth. For forecasting companies income statement we can use few assumptions like revenue assumption,operating expenses, cost of revenue, operating margin assumption.
By following the record for the past data the future income statement can be predicted. If we discuss them one by one we can have a clear idea. For revenue if we analyses the past year records it can be noticed its fluctuation year by year. In 2012 the company having higher position in revenue than its position from 2013 & 14. By observing the operating expenses we can have the higher data in 2014 than 201 3 and in 2012 the lowest data. The operating expenses shows in which area the company can curtail its expenses before damaging the company situation.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 25% with the discount code: THANKYOUPlace Order
+