Interpreting Financial Results Essay

Financial ratios analysis shows the connections concerning the facets of the company’s dealings and delivers to the public the companies’ situation and performance. Financial ratios could offer signs and indications of the financial situation and warnings of possible problem areas. I was assigned the Waste Management Inc. company they the â€Å"leading provider of comprehensive waste management services in North America. The subsidiaries provide collection, transfer, recycling, and disposal services. They are also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States† (SEC.gov, 2013) This paper contains Waste Management Inc. financial reports from the years 2010 through 2013. I used the company’s last four years of balance sheet to calculate and compare numerous financial ratios against the company’s industry benchmarks. Waste Management, Inc.’s statement is separated by three categories; solvency, efficiency and profitability. Due to its complications in the fact that it’s a service industry and not sales industry, some of the figures are different from a sales company. Solvency ratios Current Ratio The current ratio of Waste Management Inc. shows 0.77, 0.80 and 0.83 for years 2011 through 2013.The formula I used is â€Å"cash & bank balance+ acct. receivable year) / total current liabilities of year† (Mergentkbr, 2014). It is trending upward but shows that it’s slight below the industry standard which shows 1.0, 1.0, and 1.0 from 2011, 2012 and 2013. According to our text book, the higher the current ratio the healthier the company becomes. By not meeting the industry standards, this can make investors leave and look for different companies to invest on. Quick ratio The quick ratio shows that in 2011, 2012, and 2013 resulted in .72, .74 and  .77. the formula I used is â€Å"total current assets of year / total current liabilities of year† ( Mergentkbr, 2014) Once again, the trend is on the upswing and the industry median standard is 1.30, 1.40 and 1.30 in 2011 to 2013 which shows that due to its low inventory, the numbers did change as much and that a good thing due to the fact that inventory delays progress. Efficiency Ratios Collection Period (days) According to the data, the collection period during 2011to 2013 are 33.75, 37.43 and 39.40 I used the formula â€Å"account receivable of year *365/ sales of year† (Mergentkbr, 2014), this shows that it’s trending upward but still outperformed the industry standard which shows 36.30, 39.30, and 41.60 from 2011 to 213. Reason for this collection period growing could be as simple as customer size multiplying every year due to population growth. Sales/Inventory (times) According to the data, 2011-2013 sales/inventory shows 42.52, 78.13, and 51.20 from 2011 to 2013. I used the formula â€Å"sales of year / inventory of year† (Mergentkbr, 2014) to calculate for sales and inventory times. As you can see in 2011-2012 there was major spike in the inventory which matches with the industry standards. Industry median standard shows 62.60, 78.40 and 52.20 from 2011 to 2013. In this case Waste Management Inc. is above the industry standard which allows them to have a faster turnaround time and gives flexibility of getting rid of their inventory faster. Profitability Return on Sales According to the data, return of sales 3.50%, 4.30% and 2.30% from 2011-2013, I used the formula â€Å"100* net profit of year / sales of year† (Mergentkbr, 2014). From 2012 to 2013 there’s 2% dip in percentage in return on sales, this coincides with Industry median standards which shows the numbers of 3.40%, 3.90% and 2.40%. The company is right on the industry standard in this case. Return on Assets According to the data, return on assets shows 5.10%, 4.20% and 3.67% from  2011 to 2013, I used the formula â€Å"100*net profit of year / total assets of year† (Mergentkbr, 2014). It is on the down swing and it’s below the industry median standard. Industry shows 5.20%, 3.80% and 3.20%. Summary A financial ratio normally by itself doesn’t mean anything unless benchmarked with other companies in the same industry. It shows how well the business measure up against the competition and also can be a tool to measure growth of the business towards eventual company goals. Ratio analysis, when implemented frequently over a period of time, can assist small companies identify and adjust to trends that affects their procedures. References: http://www.sec.gov/Archives/edgar/data/823768/000119312512065370/d260235d10k.htm http://www.mergentkbr.com.ezproxy.apollolibrary.com/index.php/reports/industry

Risk Management and Investment Coursework Portfolio Essay

Risk Management and Investment Coursework Portfolio - Essay Example I changed the portfolio by taking the additional step to modify the number of shares and adding funds to the I already hold in the portfolio. There were few reasons to make the alterations in my portfolio starting with returns and performance of the individual stocks. The objective of the investment is to maximize the return and is found in UK. The fund comprises of the following; Barclays PLC, BG Group plc., Glencoe Xstrata PLC, Royal Dutch Shell Plc., Invensys PLC, Experian PLC, BHP Billiton PLC, Standard Chartered PLC, Old Mutual PLC, and ITV PLC. Additionally, there is 500,000 pounds in cash that need to be deposited, that earn 1 per cent annually since the inception date. Investments trust whose main goal is to generate income, faces the problem of managing all host of investments which have to be materialized using a lot of resources. There are two sets of study that alleviates the problem. First is the rules and mechanism that are defined for the needed tasks of schedule development and control schedule and its resource management. Additionally, the investment portfolios are described to allow maximization of portfolio, portfolio balancing, strategy alignment, and choosing the correct number of stocks. There is however a problem of managem ent that I faced. This is attributed to the fact that formal an investment portfolio management method was used to carry out the investment. This problem is specifically called the push problem. Additionally, the release problem where the objective of portfolio is to deliver the investments that raises the value of investments. The objective can therefore be achieved by recommending a condition that has to be followed (Prime 2007). The main objective of the investment fund is to maximize on the returns with low risk. Therefore, the investment needs to be focused on incomes that are

DEALING WITH NORMAL DATA AND ZSCORES Statistics Project

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Hydropower in Portugal Assignment Example | Topics and Well Written Essays - 1500 words

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Assigment 3-1 Assignment Example | Topics and Well Written Essays - 250 words

Assigment 3-1 - Assignment Example However, from 1971 through 1984 the trend began to change. Over the period from 1984 to 2005, production of grain declined by more than 7% according to Chiras. (Chiras, 2009) As per the estimates by the Food and Agriculture Organization of United Nations, mean intake in calories per person rose over the period from 1961 to 2008. The number of persons that are chronically undernourished declined from around 918 million in the year 1970 to 852 million in the year 2005. (Miller and Spoolman, 2008) In 2009, according to World Food Programme, approximately more than one billion people are chronically hungry. (wfp.org, 2009) In this globe, there is enough food for everybody. Hunger persists, though. The reason why hunger continues to cripple the globe can be attributed to two things. Firstly, people cannot afford to purchase the available food. Secondly, most people cannot access the available food. (Forbes, 2009) Undernourishment may be evident when few vital nutrients are consumed or using them in a more rapid manner than they are replaced. Consequences may differ in teenagers, children, and adults. For instance; it can cause death to anybody, inadequate intake if proteins can cause Kwashiorkor in infants or Marasmus if there is inadequate intake of all nutrients in infants. Poor diet refers to malnutrition and it occurs when the human body does not get enough minerals, vitamins and other nutrients. The ramifications of poor diet range from death, to many other diseases (like goiter due to lack of iodine minerals and to obesity due to over-nutrition). Overeating may be taken to refer to over-nourishment and it relates to taking excess of essential nutrients and not having or taking enough exercise. Consequences may be many; from the negative effect on body senses like taste, sight or even smell to obesity. (Gilman,

Paper for class MIS 2100 Essay Example | Topics and Well Written Essays - 500 words

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Film Analysis and Breakdown Essay Example | Topics and Well Written Essays - 750 words - 1

Film Analysis and Breakdown - Essay Example The filming is a spectacular mix of close up and panoramic shots that encapsulate life before and after the Hurricane. No shot is wasted during the opening sequence, as the view is taken on a journey through two different time periods. Documentaries are often designed to elicit emotion and to tell a story. This opening sequence certainly accomplishes this aim. While there is nothing spoken, the music tells the story. There are great editing features employed here that cut between the massive flooding that occurred when the levees broke, yet we are then cut back to an earlier time when the area was beautiful and life was good. This editing technique provides a comparison and contrast that make the film effective in communicating its intended message. The music itself appears to be carefully chosen as well. Rather than shifting its message and tone, the jazz played during the opening sequence is a consistent representation and reminder of what the Gulf Region was, and hopes to once again become. Finally, the opening sequence has a cut in action that takes us to the present time to begin telling the story that forms the foundation of the film. Two images truly dissolve into one another as the region of old and the region of today is meshed together to pain a vivid picture in the mind of the viewer. That opening sequence is designed to serve as the introduction to a story. It captivates the viewer and leaves them wanting to know more. That is the essence of a good