Financial Management

Financial Management
Jamie Jimenez
The Business Enterprise BUS 508
Instructor Daniel Sersland
declination 12, 2010













Using the underway symmetry, discuss what conclusions you can launch more or less each fellowships ability to pay rate of flow liabilities (debt).
The  true balance is a financial proportionality utilise to test a companys liquidity (also referred to as its authoritative or working capital countersink) by deriving the proportion of current assets available to c all over current liabilities. The concept behind this balance is to ascertain whether a companys short-term assets (cash, cash equivalents, marketable securities, receivables and inventory) atomic number 18 readily available to pay off its short-term liabilities (notes payable, current portion of term debt, payables, accrued expenses and taxes). In theory, the higher the current ratio, the more liquid the company is. The liquidity of a company is refers to its working capital position. The current ratio is an indicator of the short-term debt-paying ability of a company.
Based on the first sop up close in September 2010, Coca-Colas current ratio is 1.34 (Appendix A) while Pepsi-Cos is at 1.05 (Appendix A), making Coca-Colas ratio 0.3 higher.



If Coca-Cola had to fulfill its short term debt, it could do so and keep back a surplus of 25% of current assets. Pepsi would also be able to satisfy its short term obligations, but only(prenominal) remain with 4% of its current assets. Based on the current ratio Coca-Cola is in a more than better position of fulfilling its current liabilities.
Using the profitability ratios, discuss what conclusions you can make about each companys profits over the past three years.

The return on assets or ROA ratio is used to measure the overall profitability of a company. It tells an investor how much profit a company generated for each $1 in assets. The return on assets figure is also a sure-fire way to gauge the asset intensity of a business. This ratio basically shows the amount of net income generated by each...If you want to fascinate a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .