Financial Statements Industry Comparison - 1557 Words

Financial Statements: Industry Comparison University of Phoenix BSA 500: Business Systems I Instructor: May 28, 2007 Financial Statements: Industry Comparison More often managers are exposed to financial data and the need exists to develop knowledge and understanding of financial accounting concepts and principals. Nearly all companies prepare financial statements of some type and the complexity of those statements will vary. The analysis and interpretations of financial statements is made easier by the preparation of financial reports that can be produced daily, monthly, quarterly, and yearly. The following paper is intended to be a comparative financial analysis of four publicly traded companies within the same†¦show more content†¦The interest coverage ratio for this company indicates there relatively solvent and will be able to generate future revenues and meet long-term obligations. Gross margin is a good measure of a company s efficiency in producing and distributing its products (1999). The three year measurements indicate that the need to investigate their efficiency in production or distribution as the numbers have decre ased since 2004. The operating margin ratio measures the quality of a company s operations (1999). The three year span of measurement indicates a decreased operating margin and they may be losing out to their competitors. The next analysis is a company in the same industry as Huffman Trucking and the company chosen was Landstar System Incorporated, Table 4. Using the same balance sheet ratios the current ratio shows that there was some fluctuation in the current assets and their current liabilities however this shows a slight overall increase. No acid test ratio was available due to no inventory shown on the balance sheet. The working capital also fluctuated during this time frame but still represents an overall increase from 2004. The leverage over the span indicates that in 2005 they accumulated long-term debt but in 2006 they had an increase of equity or paid down the debt. The income statement inShow MoreRelatedRatio Analysis : Analysis And Interpretation Of Financial Statements1490 Words   |  6 Pagesbased on line items in financial statements like the balance sheet, profit and loss account, and a budgetary control organization. Ratio analysis is a technique of analysis and interpretation of financial statements. It helps in evaluating the financial position and performance of the firm, ratio analysis also allows firms to compare their operational or financial performance to another firm or the industry standard. This essay will firstly discuss the purpose of financial ratios, its users and howRead MoreAcc 230 Final Starbucks Financial Analysis Paper1141 Words   |  5 PagesStarbucks Financial Analysis Author Axia College of University of Phoenix Starbucks Financial Analysis Starbucks Coffee originated in 1971 as a coffee and tea cafà © opening in a small neighborhood of Seattle, Washington (Starbucks Corporation, 2010). Starbucks continued its service for Seattle residents for a decade when the new director of retail operations and marketing, Howard Shultz, decided to make some beneficial changes to the company. After two years of employment Howard Shultz decidedRead MoreUsefulness And Limitations Of Financial Ratios1510 Words   |  7 PagesUsefulness and limitations of financial ratios in evaluating the performance and management of companies Ratio analysis is used to describe the important relationship that lies between figures based on line items in financial statements like the balance sheet, profit and loss account, and a budgetary control organization. Ratio analysis is a technique of analysis and interpretation of financial statements. It helps in evaluating the financial position and performance of the firm, ratio analysisRead MoreFinancial Performance Analysis1727 Words   |  7 PagesLITERATURE Financial statement analysis is the process of examining relationships among financial statement elements and making comparisons with relevant information. It is a tool in decision-making processes related to stocks, bonds, and other financial instruments. Analysis of financial statements provides valuable information for managerial decision. Financial analysis is commonly called analysis and interpretation offinancial statement. Analysis of financial statements means establishingRead MoreCaterpillar Analysis1709 Words   |  7 PagesCaterpillar Inc. Analysis FIN400 – Analyzing Financial Statements June 23, 2013 Caterpillar Inc. Analysis Caterpillar Inc. is a global company headquartered Peoria, Illinois. They specialize in the manufacturing and selling of construction, mining, and farm equipment. Caterpillar Financial Services is a subsidiary company that offers financing options to their customers. I currently work of a construction company and I specialize in the accounting management of the company’sRead MoreMichael Hill International Report Including Financial, Swot, Competitors and Industry Analysis1553 Words   |  7 PagesMichael Hill International Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Phone: +44 20 8123 2220 Fax: +44 207 900 3970 office@marketpublishers.com https://marketpublishers.com Phone: +44 20 8123 2220 https://marketpublishers.com Michael Hill International Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Date: Pages: Price: ID: May 1, 2016 76 US$ 499.00 M987B2B5E8ABEN MichaelRead MoreRatio Analysis Paper1127 Words   |  5 Pagesbalance sheet and income statement. Financial ratios are important and helpful gauges of how an organization is functioning. An organization’s financial health, potential revenue, and even possible bankruptcy can be garnered from financial ratios. Information derived from financial statements is used to calculate most ratios and make projections. â€Å"Ratios help investors and lenders determine the risk associated with lending or investing funds in an organization† (GE Financial Healthcare Services,Read MoreFinancial Ratio Analysis in a Company859 Words   |  3 PagesOlowe (1997), Financial Ratio Analysis is the relationship between the performance of a company and the monetary data in the financial statements to assist the economic conditions. Financial ratio was defined by Robert (1994) as two financial variables being used that have been taken from either the income statement or from the balance sh eet. Ratio analysis is a tool that is brought in by individuals to perform an evaluative analysis of information in the company’s financial statements. It is an importantRead MoreInternal Financial Statements For Business Performance And Support The Decision Making Process1016 Words   |  5 Pagescomplex. Internal financial statements provide business leaders a method to evaluate business performance and support the decision-making process. The income statement, balance sheet, and statement of cash flows are important financial statements used by a firm’s managers, owners, and lenders. Ratio Analysis provides a method to analyze these statements. Income Statement The income statement is an important tool for tracking cash flow in and out of an organization. The income statement tracks revenueRead MoreXero Limited Swot Analysis Bac1483 Words   |  6 PagesXero Limited. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Phone: +44 20 8123 2220 Fax: +44 207 900 3970 office@marketpublishers.com https://marketpublishers.com Phone: +44 20 8123 2220 https://marketpublishers.com Xero Limited. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Date: Pages: Price: ID: August 1, 2015 50 US$ 499.00 X2531BAD6F0BEN Xero Limited. Fundamental Company Report provides a complete overview