This paper defines the term accounting ratios and details why they are a significant tool applied by accountants when presenting accounting statements.
Abstract The writer of this paper examines the importance of accounting ratios in business. Accounting ratios illustrate the present as well as the prospective, so that shareholders can visualize how much gain a business attained, the total worth of the assets and the level of cash reserves available. This well-researched paper discusses the advantages and disadvantages of accounting ratios. One significant drawback of the accounting ratio is that it depends too heavily on the conventional costs that lead to twists in quantifying performance. Ratios are required to be represented meticulously. They can entail the evidences to the performance of the company or financial environment. However, they are unable to demonstrate whether the performance is good or bad out their own. The writer details the manner in which the final figures of accounting ratios are achieved, while discussing the fact that these ratios necessitate some quantitative information for an informed analysis to be made. The writer contends and clearly explains why accounting ratios are completely dependent on the supplied data which may or may not be accurate.
Table of Contents:
Introduction
Discussion
Conclusion
References
From the Paper "A markedly low accounts ratio may give rise to angry suppliers and remarkably high inventory turnover ratios may lead to supply shortages and angry customers. The one that is correct for one company may not be considered appropriate for another one. Besides, no two companies are found to be similar irrespective of the fact that they are competitors in the same industry or market. Application of ratios to evaluate one company with another provides misleading information. Businesses may be within the same industry but have distinguished financial and business risk. Ratios are completely dependent on the data that may or may not be accurate."
Abstract This paper defines the concentration ratio as the "percentage of market share owned by the largest firms in an industry". The author points out that concentration ratios in business practice emphasize the importance of market competitiveness and the number of firms within a given industry. The paper relates that it is expected that firms will be affected by variables such as prices, brand recognition and product quality in their efforts to promote competition and market effectiveness.
From the Paper "In a business environment that incorporates the use of concentration ratios, it is necessary to understand the meaning of this term and its application to modern business principles. The concentration ratio is defined as the "percentage of market share owned by the largest firms in an industry" (QuickMBA, 2004). In the example given, it is necessary to consider that a given industry segment with a particular number of firms is typically very competitive, or it is not as relevant in the overall marketing mix (QuickMBA, 2004). Therefore, the example provides a concentration ratio of 30% for the top 20 firms, or CR20. This type of ratio demonstrates that these firms own 30% of the total market share within this industry, and in an analytical sense, this is a relatively low level of competition amongst these firms."
Abstract This paper explains that the increased nurse to patient ratio on a given shift is causing an increased burden on nurses. The author points out that this is causing a high tendency for nurses to become overworked and overstressed. The paper relates that this high nurse to patient ratio may lead nurses to burnout and the desire to leave the profession.
From the Paper "Today's nurses possess considerable challenges in their professional lives. For example, it is anticipated that the typical stressors of the nursing profession provide additional strain on the job in a variety of ways, such as patient care, accountability, quality assurance, and other related factors. Nurses are overstressed and overworked in many instances, and their professional lives are left in disarray due to the tremendous responsibilities that they encounter. For many nurses in a variety of healthcare settings, it is expected that there is a significant requirement to handle extensive caseloads on any given shift, and this may lead to errors on the job, as well as critical lapses in judgment in some cases. The lack of respect for nurses plays a role in the process, and a substantial component of these stressors is the provision for a high ratio of patients assigned to each nurse."
Abstract The paper explains that few mathematical figures have achieved the status that the Golden Ratio has throughout the historical past and well into the modern and post-modern era. The paper discusses how the Golden Ratio (GR) has also been termed the Golden Mean or the Divine Proportion because of its seemingly endless recurrence in nature as well as its perpetual application not only by mathematicians but by artists and architects alike, as well as others (Clawson b. 33). The paper explains that artists and architects seem to enjoy the predictability of the GR as well as its symmetry.
From the Paper "The GR has been attributed to the Greeks whose quest for knowledge, 0x01 graphic as employed by the Greeks as being representative of the GR in many respects where, "Golden Means. F = AB/BC = CH/BC = IC/HI = 2DE/EF = EG/2DE" (Clawson a. 121). In this respect the GR has also been related to other unique and fascinating mathematical principles."
Abstract This paper explains that Ratio Analysis is an early warning indicator that enables the business owner and manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. The author relates that Ratio Analysis is done by comparing the specific company's ratios with the average of similar businesses and comparing the business's own ratios for several successive years, watching especially for any unfavorable trends that may be starting. The paper states that the current ratio measures the ability of the firm to pay is current bills, while still allowing for a safety margin above the required amount needed to pay current obligations.
Table of Contents
Liquidity Ratios Current Ratio Quick Ratio Net Working Capital
Activity Ratios Days Sales Outstanding
Average Payment Period
Fixed Assets Turnover
Total Asset Turnover
Inventory Turnover
Debt Ratios Debt Ratio Debt to Equity Ratio Times Interest Earned
Fixed Payment Coverage Ratio Profitability Ratios Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Investment
Return on Equity
Earnings per Share
From the Paper "The ROI is determined by multiplying the Total Asset turnover by the Net Profit Margin. The figure is meaningful because it shows how well a company uses its assets to generate profits,. The basic formula is as follows:
ROI = Total Asset Turnover x Net Profit Margin
The DuPont method allows the firm to break down its return on investment into a profit on sales component and an asset efficiency component. Typically, a firm with a low net profit margin would have a total asset turnover. The relationship between the net profit margin and Total Asset turnover is largely dependent on the industry the firm operates."
Abstract In this article, the writer explains that nurse-to-patient ratios refers to the number of patients each nurse has to care for. Further the writer notes that minimum staffing ratios represent the minimal amount of nurses required to care for the maximum number of patients, without compromising patient or nurse safety. The writer points out that both the public and physicians rank nurse under-staffing of hospitals as one of the most serious threats to patient safety. The writer maintains that patient safety experts are concerned whether or not inappropriate ratios lead to higher mortality rates and a variety of complications and adverse effects as well as higher patient stays at hospitals. The writer concludes that determining nurse-to-patient ratios is an arduous task with no single or definite solution. Further, the writer notes that too many variables exist to develop definitive guidelines to cover every possible situation in an acute care facility.
Outline:
Abstract
Introduction
Quality of Care / Patient Safety
Nurse Staffing / Skill Mix
Table 1. Matrix for Staffing Decision-Making
Nurse Safety / Job Dissatisfaction
Consensus / Professionalism
Patient Outcomes: Studies Supporting the Influence of Nurse-To-Patient Ratios Patient Outcomes: More Than Just Nurse-To-Patient Ratios?
State Legislation
Federal Legislation
Professionalism and My Role
Conclusion
From the Paper "Acute care facilities try to maintain low costs and employ quality nurses. Within this statement is a double standard. How can we have quality nurses and cut costs at the same time? This is where the skill mix comes into play. In the skill mix, there are Registered Nurses (RNs), Licensed Practical Nurses (LPNs), and unlicensed staff. If the lesser skilled staff free RNs they can be better able to perform their nursing duties and assessments. If acute care facilities can agree on an appropriate number of each type of staff member within the facility, they might be better able to accomplish safe patient outcomes while keeping costs down."
"Determining nurse-to-patient ratios is a complex issue where one solution is not sufficient to cover all circumstances. The American Nurses Association assembled a panel of nursing and health professionals to research appropriate staffing levels."
Abstract This paper analyzes China's growing gender-ratio imbalance. It discusses the history of the issue and why the trend is changing. It then examines the causes of the gender-ratio imbalance through statistical data. The paper includes an economic analysis in relation to the problem. Finally, it discusses the possible implications of the gender-ratio imbalance nd provides policy proposals to mitigate the issue.
Table of Contents:
Introduction
Sex Ratio Causes of the Gender Imbalance
Implications of the Gender Imbalance
Opinions Regarding the Sex-Ratio Imbalance
Policy Proposals
Conclusion
From the Paper "As China's economy continues to grow at an unprecedented rate, there exists a pressing issue that has been overshadowed by optimism of China's future. Like China's GDP growth, China's imbalanced sex-ratio has also unprecedented highs. If not handled properly, this issue poses a serious problem for the future of China's stability and growth, especially regarding politics, society, and economics."
"The sex-ratio at birth is defined as the number of males born divided by the number of females born. Most modern societies have a SRB of around 105. This means that for every 100 females born, there are roughly 105 males born . This "natural" rate is mostly because females have higher survival rates than males, especially in modern societies. In other words, males have more age related deaths than females . China, on the other hand is experiencing a demographic phenomenon with sex-ratios of up to 120 in certain provinces."
Abstract This paper examines Starbucks' liquidity, profitability and growth rations. The author explains that from these key financial ratios, it is clear that the company should be able to achieve its sales target based on its guiding principles. The paper warns that the current world financial crisis can have an effect on Starbucks' investments and on the purchasing power of its customers, both of which can have a negative consequence on the growth objectives of the mission statement.
Table of Contents:
Introduction
Analysis
Starbucks' Mission Statement
The Six Principles
Meeting Stakeholders' Goals
Meeting the $23 Billion Goal
Liquidity Ratios Table: Financial Condition of Starbucks
Profitability Ratios Table: Profit Margins at Starbucks
Growth Ratios Table: Growth Ratios Conclusion
From the Paper "Starbucks is doing an exceptional job in this regard. According to a Business & Health article, Starbucks is one of very few companies who lavish their employees (80% of whom work part time). Besides free espressos and a free pound of coffee a week, Starbucks is being so generous by offering its employees, permanent or part time, paid annual and sick leaves, subsidized health benefits, stock options and retirement plans. In a business where it's not unheard of to have 100-400% employee turnover, Starbucks has kept it to unbelievably low 55 percent."
Abstract This paper focuses on two large retailers in the area of retail home improvements, Lowes and Home Depot, and compares and contrasts their financial ratios in a five-year trend table along with the most recent industry averages. The information presented in this report can be used to help determine the over-all financial status of these two companies.
Financial Ratios Used
Home Depot
Lowes
Efficiency Ratio Analysis
Liquidity Ratio Analysis
Leverage Analysis
Profitability Analysis
From the Paper "The inventory turnover ratio shows how many times per year a business can turn-over its inventory. In other words, this number represents how many times the business sells out of its inventory in a given year. This ratio is calculated by taking the cost of goods sold and dividing it by the average amount of inventory the business carries. Notice that these ratios are determined by the cost of goods sold because the inventory figures are carried on the boots at cost, not the price the merchandise will eventually sell for (Brealey, pg. 142). When comparing Lowe's and Home Depot to the industry average, we see that both companies' ratios were 5.0 for the year 2003 and the industry average was 4.8. This means that for the year 2003, both Lowe's and Home Depot were able to turn over their inventory a bit faster than the industry as a whole. "
Abstract This paper discusses the importance of the nurse-to-patient ratio in the care of patients, particularly those in acute care. It discusses the effects of cutbacks in nursing staff numbers to patient safety and how this can be improved by the nursing staff and skill mix. The paper then discusses nurses' safety and positive legislation in California regarding this issue. The paper concludes by briefly discussing individual nurse's roles in ensuring patient and nurse safety.
Table of Contents:
Abstract
Introduction
Patient Safety
Nurse Staffing / Skill Mix
Nurse safety / Job Dissatisfaction
Legislation
Professionalism And My Role
Nurse-To-Patient Ratios: How I See Myself In This Role Now And In The Future
Conclusion
From the Paper "Determining nurse-to-patient ratios is an arduous task with no single or definite solution. Too many variables exist to develop definitive guidelines to cover every possible situation in an acute care facility. The mix of RNs and LPNs, including individual experience levels of each staff member and training in specialized areas, is a relevant factor to determine appropriate staff. (Currie, Harvey,West, Mckenna, and Keeney, 2005). Needs of patients vary greatly from individual to individual. Many factors determine the acuity of the patient and, therefore, may alter the amount of attention required by a patient. No single ratio solves all problems. Many states have tried passing legislation to mandate ratios, and, all but California, have been unsuccessful. More research is needed to effectively resolve this issue."
Abstract The paper relates that California became the first state to mandate nurse-to-patient ratios. The paper explores the issues surrounding this policy, including the historical background, the stakeholders involved, why this is such a critical issue and how nurses can play an active role in ensuring this policy is adopted by all states in the union. The paper shows how mandatory nurse-to-patient ratios improve the quality of nursing and reduce the nursing shortage through greater retention and interest.
From the Paper "Nurse to patient ratios have been a source of controversy for over a decade, culminating in legislative action at the state and federal level and nursing associations. In 1999, California became the first state to mandate nurse to patient ratios (Sabin, 2004; Wilson, 2004; Dumpel, 2005; Gedhill, 2005; "Hospitals struggle," 2005; Evans, 2006). The legislation mandated that medical-surgical nurses no longer be responsible for more than five or six patients each. Research has shown the optimal workload for nurses to be four patients ("Nurse:Patient," 2006; Ritter-Teitel, 2004; Wilson, 2004). Increasing the patient count to six patients per registered nurse resulted in a 14% increase in mortality rate within 30 days of hospitalization, increased needle stick injuries among nurses and a significant increase in nursing sensitive patient complications such as urinary tract infections, pneumonia, upper GI bleeding and patients going into shock ("Nurse:Patient," 2006; Ritter-Teitel, 2004; Wilson, 2004)."
Abstract This paper explains that Mario Livio's book "The Golden Ratio: The Story of Phi, the World's Most Astonishing Number", chronicles the history of, not of a person, thing, or concept, but a number. The paper then relates that this number phi, or notion of proportionality or the 'Golden Ratio', however, has been invested with so much cultural, emotional, and religious importance that it has taken on a character of its own. Next, the paper points out that the reason that phi is astonishing is because, for centuries, our fascination with proportion and beauty has made its properties an object of wonder. The paper concludes that, although Livio ultimately deflates the mystery of phi, his book is a helpful explanation not just of the number but also of why balance and symmetry dominates so many modern discussions of art and architecture.
From the Paper "But ultimately, astrophysicist Mario Livio says that creating this mysterious proportion is no different than a person cutting a piece of string into pieces. While the 'Golden Ratio' appears in many natural phenomena, some supposed appearances are really not true 'Golden Ratios' (such as the Pyramids and Parthenon) and all appearance of perfection is based in human notions of proportionality. It is evidence of humans looking at nature, not that nature or God through nature looking back at us. We see perfection and proportionality because we are looking for it in nature."
Abstract The paper discusses a comparison between ten important companies, taken from different fields of activities. The comparison tool represents various financial-accounting ratios that would be best highlighted in quantitative terms, as well as the specific characteristics and performance of the company. The paper notes that the comparison is based on financial and accounting ratios as the stakeholders in these companies need to be informed at all times about their investments.
Outline:
Introduction
Retailer Industry : Home Depot vs. Sears
Beer Industry
Computer Industry
Healthcare Johnson and Johnson
Books Industry
Conclusion
From the Paper "For example, a retailer conducts business in collaboration with a multitude of other types of enterprises, among which we can mention - logistics companies, manufacturers, shipment companies, and so on. If the retailer has a negative performance, or even worse goes bankrupt, it can influence in an unwanted manner the other corporations it does business with. The companies, which represent the subject of our analysis, are to be presented in a pair of two, and have different characteristics and attributes. "
Abstract This paper discusses how the nursing shortage and repercussions in nursing attrition and compromised patient care led to numerous attempts at forcing mandatory nurse-patient ratio legislation in California until finally, the bill was signed into law in 1999. This paper reviews the bill including the history and ramifications of the legislation and focuses on implications for the nursing profession and others.
From the Paper "In 1999, California became the first state in the union to impose mandatory nurse-patient ratios (Sabin, 2004; Wilson, 2004; Dumpel, 2005; Gedhill, 2005; "Hospitals struggle," 2005; Evans, 2006). The legislation requires that med-surg nurses would no longer be responsible for more than five or six patients each, during the phased in approach to the bill. According to research, the bill required that as of January 1, 2004, no more than six patients per nurse be assigned and that by January 1, 2005 the number be reduced to the assignment of no more than five patients per nurse (Sabin, 2004; Gedhill, 2005; "Hospitals struggle," 2005; Evans, 2006). Governor Gray Davis signed the California Staffing Ratio Law, AB 394 into law on October 10, 1999, although attempts to pass such legislation dated back to 1193 with the introduction of AB 1445 that was defeated (Dumpel, 2005). "
This paper is a comparative analysis of Blockbuster Inc. and Netflix Inc., both movie rental companies, using financial ratios based on their respective income statement information covering the five-year period of 2001 to 2005.
Abstract This paper uses four types of financial ratios---leverage ratios, liquidity ratios, efficiency ratios and profitability ratios---to summarize large quantities of financial data from Blockbuster Inc. (BBI) and Netflix Inc. (NFLX) and to compare their performances. The author points out that, because Blockbuster Inc. carries the heavy weight of debt, if Blockbuster loses market share and revenues are spread thinner, they will have a hard time repaying that debt. The paper states that current trends in this industry are in Netflix's favor because more and more people are opting not to drive to their local video store but rather have several selections mailed to them at once; however, both companies are challenged by companies that sell movie downloads. Many tables.
Table of Contents
Leverage Ratios Total Debt Ratio (Debt to Assets) = Total Liabilities / Total Assets
Liquidity Ratios Current Ratio = Current Assets / Current Liabilities
Quick Ratio = Cash + Marketable Securities + Receivables / Current Liabilities
Net Working Capital to Total Assets Ratio Efficiency Ratios Asset Turnover Ratio = Sales / Average Total Assets
Profitability Ratios Net Profit Margin = Net Income / Sales
Operating Profit Margin = Net Income + Interest / Sales
Return on Equity = Net Income / Average Equity
Conclusion
From the Paper "In liquidity ratios there is a major focus on current assets. Efficiency ratios judge how effectively the company is using them. The asset turnover ratio shows how hard the companies' assets are working for them or against them. [Table: Yearly Asset Turnover Ratio] Blockbuster as expected has a steadily increasing Asset Turnover Ratio as their assets are older and more depreciated. Netflix and their assets are young compared to that of Blockbusters' and is evident in their highly erratic ratios. You can see spurts of growth between each year. Their numbers are greater in response to having less overall total assets than Blockbuster and their thousands of stores possess."
