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Ratio analysis

A tool used to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis.

Liquidity Ratios

Liquidity ratios are the ratios that measure the ability of a company to meet its short term debt obligations. These ratios measure the ability of a company to pay off its short-term liabilities when they fall due.

* Current ratio is balance-sheet financial performance measure of company liquidity. Current ratio indicates a company's ability to meet short-term debt obligations. The current ratio measures whether or not a firm has enough resources to pay its debts over the next 12 months.

The current ratio = Current Assets / Current Liabilities

2011=16534919/15003201=1,6

2012 = 13409572/11574994=1,4

A decline in the current ratio over time can be problematic as well. It may indicate that the company will not be able to meet its debt when that debt comes due. Quick Ratio will decrease when cash or accounts receivable balances decrease. For most industrial companies, 1.5 is an acceptable current ratio.

* Working capital is the amount by which the value of a company's current assets exceeds its current liabilities. Also called net working capital. Sometimes the term "working capital" is used as synonym for "current assets" but more frequently as "net working capital", i.e. the amount of current assets that is in excess of current liabilities. Working capital is frequently used to measure a firm's ability to meet current obligations. It measures how much in liquid assets a company has available to build its business.

Working capital (net working capital) = Current Assets - Current Liabilities

2011 = 16534919-15003201=1531718

2012 = 13409572-11574994=1834579

Positive...