Liquidity‚ liquidity‚ liquidity….. In the context of the events of the last few years just how important is liquidity to the survival and well-being of Financial Institutions? Some believe it has a greater influence on events than Capital! Discuss. (In this assignment you need to outline the role of liquidity‚ issues arising when liquidity is scarce and compare the role of liquidity to that of Capital but most importantly give your own view on these matters) Role of Liquidity Liquidity can
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KEELE UNIVERSITY KEELE MANAGEMENT SCHOOL ACCOUNTING PRINCIPLES ESSAY 2013-14 MAN-40074 Essay title: Tesco Plc. 2012 Annual Accounts compare them with Sainsbury Plc. as appropriate Word Account: 1957 Student Name:SICHEN LU Student ID:1301529701 Module Leader: Professor Istemi Demirag Date of Submission: 2nd December 2013 Introduction Tesco was established in 1919 and now has become the largest retailer in the UK‚ the second largest retailer measured by profits
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Tesco’s Clubcard Customer Relationship Management Programme: The challenges of coming to terms with a changing market Synopsis For almost two decades‚ Tesco was seen to be one of the most successful retail organisations in the world‚ with a pioneering Clubcard-based loyalty scheme and the development of a strategic CRM (Customer Relationship Management) programme that provided the company with the basis for true customer insight and greater brand engagement. However‚ in 2011 the company
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Introduction There is a trade-off between liquidity and profitability; gaining more of one ordinarily means giving up some of the other. Liquidity means having enough money in the form of cash‚ or near-cash assets‚ to meet your financial obligations. Alternatively‚ the ease with which assets can be converted into cash. Profitability is a measure of the amount by which a company’s revenues exceed its relevant expenses. It is obvious that excessively high levels of liquidity will not do any organization any
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Ratio Analysis Ratio analysis is basically used to understanding the financial health of a business entity. With the help of ratios we can easily calculate from current year performance of the companies and are then compared to previous years. Ratio analysis conducts a quantitative analysis of information in a company’s financial statements. These Ratios are most commonly used in banking sector can be divided into five main categories Liquidity Ratios Leverage Ratios Profitability Ratios Activity
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Ratio analysis Debt ratio Debt ratio (2006-2007) = Total liabilities / Total assets = 10‚170/12‚064 = 0.84 Debt ratio (2007-2008) = 9‚210/11‚769 = Debt ratio (2008-2009) = 10‚003/11‚229 = Debt ratio (2009-2010) = 11‚043/12‚537 = Current ratio Current ratio (2006-2007) = Current assets / Current liabilities = 3‚424/4‚790 = 0.71 Current ratio (2007-2008) = 2‚164/4‚498 = Current ratio (2008-2009) = 1‚326/5‚389 = Current ratio (2009-2010) = 2‚697/6‚085 = Return on sales (ROS) Return on Sales
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Ratio Analysis Memo July 9‚ 2012 Memo To: From: Date: July 9‚ 2012 RE: Kudler Fine Foods ratio analysis One of the things that we will be going over is some of the ratios for Kudler Fine Foods through Liquidity‚ Profitability‚ and solvency ratios. We will look into some of the finding that were found through these ratios and discuss them. One of the things that we found was where Kudler Fine Foods’ position is with these ratios. The first area that we look at is profitability
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Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets) Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity Investment Ratios Earnings per Share
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CNBC Investopedia. (2011). Retrieved from http://www.investopedia.com/terms/c/currentratio.asp Investopedia Investopedia. (2012). Retrieved from http://www.investopedia.com/terms/r/returnonequity.asp#axzz28ZHmfXpq Investopedia. (2012). Price-earnings ratio. Retrieved from http://www.investopedia.com/terms/p/price-earningsratio.asp Investopedia Investopedia. (2012) Retrieved from http://www.investopedia.com/terms/e/earnings-power.asp#axzz28ZHmfXpq Investopedia. (2012) Retrieved from http://www.investopedia
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PROFITABILITY RATIOS RETURN ON INVESTMENT (ROI): The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence‚ the return on capital employed is used as a measure of success of a business in realizing this objective. Return on Investment establishes the relationship between the profit and the capital employed. It indicates the percentage of return on capital employed in the business and it can be used to show the overall profitability
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