Tuesday, May 14, 2019

Submit a soft copy through the safeassign icon created in the Black Assignment

Submit a soft copy through the safeassign icon created in the Black Board - Assignment ExampleThe quick proportion is metrical by dividing the sum of notes and receivables by current liabilities. Unlike the current balance, the quick ratio ignores inventories and other current assets that may boast doubtful liquidity. A satisfactory quick ratio, depending on the history of collecting debts is 11. The quick ratio of Ooredoo is (20,203,819/23,531,834) = 0.86 while that of Vodafone is (172,166/1,004,395) = 0.17.Creditors concentrate on the working gravid as it deals to a greater extent with cash flows. Working capital is the difference between current assets and current liabilities. Most banks tie loan approvals on a caller-outs minimum working capital requirement. The working for Ooredoo is (28,361,079-23,531,834) = 4,829,245 while that of Vodafone is (425,302-1,004,395) = -579,093.The leverage ratio shows the extent to which a company relies on debt to keep operating. Creditors such as banks and suppliers are more concerned by this ratio. supplement ratio is deliberate by dividing total liabilities by the net worth of the company. The higher the ratio the more risky it becomes to extend credit to the company. The leverage for Ooredoo Company is (23,531,834/97,415,655) = 0.24 while that of Vodafone is (1,795,200/7,753,696) = 0.23.The gross clams ratio is calculated by dividing gross profits by net sales. Different industries have a standard road map of the gross profit ratio with which companies can compare their specific numbers. Companies need to keep track of the track of the gross profit ratio and ensure it does not deviate away from the target. The gross profit ratio for Ooredoo Company is (3,895,146/33,851,340) = 0.12 while that of Vodafone is (343,586/1,431,670) = 0.24.The return on assets ratio indicates how a company efficiently utilizes its assets. This ratio is calculated by dividing net profits by total assets. Bankers and investors calculat e this ratio by dividing net pre-tax profit by total assets.

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