Académique Documents
Professionnel Documents
Culture Documents
ANALYSIS
R A T I O A N A L Y S I S
CONTENTS
RATIO
ANALYSIS
....................................................................................................................................
5
1.
Understanding
the
Language
.............................................................................................................
5
i.
Insolvency
......................................................................................................................................
5
ii.
Fixed
&
Variable
Costs
and
Cost
Functions
...................................................................................
5
iii.
Dividends
.....................................................................................................................................
6
iv.
Net
Working
Capital
.....................................................................................................................
6
v.
Marketable
Securities
...................................................................................................................
6
vi.
Debt
.............................................................................................................................................
7
vii.
Stakeholders
...............................................................................................................................
8
viii.
Managerial
Efficiency
(ME)
........................................................................................................
8
ix.
Fundamental
Analysis
..................................................................................................................
8
2.
Introduction
to
Ratios
........................................................................................................................
9
i.
Ratios
Comparative
Analysis
.......................................................................................................
9
ii.
The
many
faces
of
ratio
analysis
.................................................................................................
10
3.
Liquidity,
Leverage,
Profitability
and
Productivity
.............................................................................
11
i.
Liquidity
........................................................................................................................................
11
ii.
Leverage
......................................................................................................................................
12
iii.
Productivity
................................................................................................................................
13
iv.
Profitability
.................................................................................................................................
14
CASE
STUDY
1
OFFICE
DEPOT
.................................................................................................................
15
1.
Overview
............................................................................................................................................
15
2.
Financial
Condition
Review
................................................................................................................
16
3.
Ratios
Quick
Reviews
......................................................................................................................
18
Leverage
Ratios
..................................................................................................................................
18
Productivity
or
Turnover
Ratios
.........................................................................................................
18
Profitability
Ratios
..............................................................................................................................
18
4.
Industry
review
and
a
first
look
at
ratios
...........................................................................................
19
i.
Industry
Analysis
..........................................................................................................................
19
ii.
Liquidity
Ratios
............................................................................................................................
19
iii.
Leverage
Ratios
..........................................................................................................................
21
iv.
Productivity
Ratios
.....................................................................................................................
23
v.
Profitability
Ratios
.......................................................................................................................
26
CASE
STUDY
2
STAPLES
&
OFFICE
DEPOT:
COMPARATIVE
RATIO
ANALYSIS
......................................................
30
1.
Staples
Overview
.............................................................................................................................
30
2.
Financial
Condition
Review
................................................................................................................
30
3.
Liquidity
Ratios
-
Comparison
............................................................................................................
31
i.
Current
Ratio
................................................................................................................................
32
ii.
Quick
Ratio
..................................................................................................................................
33
4.
Leverage
Ratios
..................................................................................................................................
33
i.
Debt
to
Equity
Ratio
.....................................................................................................................
33
ii.
Debt
to
Total
Assets
....................................................................................................................
35
iii.
Times
Interest
Earned
(Coverage)
Ratio
....................................................................................
35
iv.
Fixed
Charge
Coverage
Ratio
.....................................................................................................
36
Please
do
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All
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R A T I O A N A L Y S I S
Please
do
not
photocopy
or
distribute
without
permission.
All
rights
reserved
Alchemy
Software
Pvt
Limited.
http://FourQuants.com
Page
4
of
45