Question
*Please summarize this into 100 words no more than 200 words for sure if need be.* 1.Total current assets = Total current assets is the
*Please summarize this into 100 words no more than 200 words for sure if need be.*
1.Total current assets = Total current assets is the aggregate amount of all cash, receivables, prepaid expenses, and inventory on an organization's balance sheet. These assets are classified as current assets if there is an expectation that they will be converted into cash within one year. The total amount of current assets is frequently compared to total current liabilities, to see if there are sufficient assets available to pay for the obligations of a business.
Comment = having substantially more current assets than liabilities indicates that a business should be able to meet its short-term obligations. This type of liquidity-related analysis can involve the use of several ratios, include the cash ratio, current ratio, and quick ratio. Walmart have high or strong current assets so they have high liquidation then loblaws.
2. Total long term assets = hhLong-term assets are assets, whether tangible or non-tangible, that will benefit the company for more that one year. Also known as non-current assets, long-term assets can include fixed assets such as a company's property, plant, and equipment, but can also include other assets such as long term investments, patents, copyright, franchises, goodwill, trademarks, and trade names, as well as software.
Long-term assets are reported on the balance sheet and are usually recorded at the price at which they were purchased, and so do not always reflect the current value of the asset. Long-term assets can be contrasted with current assets, which can be conveniently sold, consumed, used, or exhausted through standard business operations with one year.Long-term assets make a large percentage of the company's overall fixed costs, which will be advantageous in the future. Data on an organizations long-term assets is important as it helps to make accurate financial reports, business valuations, and analysis of the organizations finances.
Comment = walmart has strong long term assets so this will help them to make accurate decisions for their company.
3. Total current assets = h"Total current liabilities" is the sum of accounts payable, accrued liabilities and taxes. Long-term liabilities include the following: Bonds payable is the total of all bonds at the end of the year that are due and payable over a period exceeding one year.Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle. Current liabilities are typically settled using current assets, which are assets that are used up within one year.Current liabilities are typically settled using current assets, which are assets that are used up within one year. Current assets include cash or accounts receivables, which is money owed by customers for sales. The ratio of current assets to current liabilities is an important one in determining a company's ongoing ability to pay its debts as they are due.
4. Total long term liabilities = . Long-term liabilities are financial obligations of a company that are due more than one year in the future. The current portion of long-term debt is listed separately to provide a more accurate view of a company's current liquidity and the company's ability to pay current liabilities as they become due.Long-term liabilities are obligations that are due at least one year into the future, and include debt instruments such as bonds and mortgages. Analyzing long-term liabilities is done for assessing the likelihood the long-term liabilitys terms will be met by the borrower. After analyzing long-term liabilities, an analyst should have a reasonable basis for a determining a companys financial strength. Analyzing long-term liabilities is necessary to avoid buying the bonds of, or lending to, a company that may potentially become insolvent.
5. Shareholders fund = . Shareholders' funds refers to the amount of equity in a company, which belongs to the shareholders. The amount of shareholders' funds yields an approximation of theoretically how much the shareholders would receive if a business were to liquidate.Shareholders' fund is the total investment made by the investors in equity or preference capital of the company and it also includes accumulated retained earnings which are earned from the investment made by the shareholders. Shareholders' fund is basically the owners' fund.
When an increase occurs in a company's earnings or capital, the overall result is an increase to the company's stockholder's equity balance. Shareholder's equity may increase from selling shares of stock, raising the company's revenues and decreasing its operating expenses.For most companies, higher stockholders' equity indicates more stable finances and more flexibility in the case of an economic or financial downturn. Understanding stockholders' equity is one way investors can learn about the financial health of a firm.
6. Total shareholders equity and liability =. Liabilities represent a company's debts, while equity represents stockholders' ownership in the company. Total liabilities and stockholders' equity must equal the total assets on your balance sheet in order for the balance sheet to balance.Total liabilities and stockholders equity equals the sum of the totals from the liabilities and equity sections. Businesses report this total below the stockholders equity section on the balance sheet. To check that you have the correct total, make sure your result matches your total assets on the balance sheet.Total stockholders equity equals the money you have raised from issuing common and preferred stock plus your retained earnings, minus your treasury stock. Retained earnings are the total profits you have kept since you started your business that you have not distributed as dividends. Treasury stock represents the cost of any shares you repurchased from investors.The amount of your total liabilities equals the sum of the items listed in the liabilities section of your balance sheet. These items include actual dollar amounts you owe, such as accounts payable, notes payable and deferred taxes. They also include upfront payments for services or products you have yet to provide.
6. Current ratio = The current ratio is a liquidity ratio that measures a companys ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.
The current ratio is an indication of a firm's liquidity. Acceptable current ratios vary from industry to industry. In many cases, a creditor would consider a high current ratio to be better than a low current ratio, because a high current ratio indicates that the company is more likely to pay the creditor back. Loblaws has high current ratio so they are in better position of liquidity that walmart.
7. Working capital ratio = n The working capital ratio is a very basic metric of liquidity. It is meant to indicate how capable a company is of meeting its current financial obligations and is a measure of a company's basic financial solvency. In reference to financial statements, it is the figure that appears on the bottom line of a company's balance sheet.Positive working capital shows that your business has sufficient liquid assets to pay off immediate debts. By contrast, negative working capital shows that you would struggle to pay immediate debts if restricted only to your current assets.
8. Debt ratio = The term debt ratio refers to a financial ratio that measures the extent of a companys leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. It can be interpreted as the proportion of a companys assets that are financed by debt. A ratio greater than 1 shows that a considerable portion of a company's debt is funded by assets, which means the company has more liabilities than assets. A high ratio indicates that a company may be at risk of default on its loans if interest rates suddenly rise. A ratio below 1 means that a greater portion of a company's assets is funded by equity.A debt ratio of greater than 1.0 or 100% means a company has more debt than assets while a debt ratio of less than 100% indicates that a company has more assets than debt.
Loblaws have more debt ratio that walmart so that mean loblaws have high risk.
9. Debt equity ratio = n The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is calculated by dividing a companys total liabilities by its shareholder equity. The D/E ratio is an important metric used in corporate finance. It is a measure of the degree to which a company is financing its operations through debt versus wholly owned funds. More specifically, it reflects the ability of shareholder equity to cover all outstanding debts in the event of a business downturn. The debt-to-equity ratio is a particular type of gearing ratio.
The debt-to-equity (D/E) ratio is a metric that provides insight into a company's use of debt. In general, a company with a high D/E ratio is considered a higher risk to lenders and investors because it suggests that the company is financing a significant amount of its potential growth through borrowing.
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