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Thursday, July 13, 2006

Ratio Analysis

The following are the gist of ratios for the firm under consideration for the past 4 years beginning 03-2005 backwards.
Debt to Equity=0.45/0.42/0.58/0.66(03-2002)
1.What does this indicate?
2.Is this ratio Industry Specific?
3.Can the ratio be impacted by Interest rate phenomenon?
4.What Impact do the ratio have if at all on production cycle?
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Current Ratio:1.66/1.52/1.72/1.94(03-2002)
1.Can u read into the trend?
2.How comfortable is the firm on its Working capital?
3.Does this ratio get impacted by Market forces?
4.Is it Impacted by Industry trends?
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Inventory turnover ratio:12.92/13.22/13.11/11.95(03-2002)
1.How Good is the trend?
2.How efficiently Inventory can be managed inorder to achieve "Just in time" Inventory handling or near zero handling?
3.Which is the method of accounting for inventory?Can the method of accounting inventories be consistent which is a convention in Accounting?
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