ratios from their financial statements.
Ⅱ. Financial Ratio analysis
1. Liquidity
Liquidity refers to a company's ability to meet its current maturing debts. And it focuses on the relationship between current assets and current liabilities. With it, Creditors and analysts evaluate a company's short-term financial strength.
1.1. cash ratio
it is a means to measure the adequacy o
The leverage ratio is calculated in a comparable manner across jurisdictions, adjusting for any differences in accounting standards. The Committee has designed the leverage ratio to be a credible supplementary measure to the risk-based requirement with a view to migrating to a Pillar 1 treatment based on appropriate review and calibration.
4. Reducing procyclicality and promoting countercycli
rations. The paper initially evaluates different ratios representing short-term solvency, asset utilization/turnover, long-term solvency or financial leverage, profitability and market values for companies in the same industry within same country. Then, the paper further scrutinizes each component of DuPont Identity and compares how well each company is carrying out operating, investing and finan
Financial Leverage Ratio
It measures the relationship between total assets and the stockholders’ equity that finances the assets.
Both company shows pretty high financial leverage
High financial leverage means they are highly
dependent on debt when financing assets.
Total Asset Turnover Ratio
Total Asset Turnover measures the sale generated
per