Yunanbaiyao

Financial Analysis: In effectuate to better underwrite the concrete financial smirch of Yunnan Baiyao Group Co. we have hold back word their financial statements for the years lede up to 2003. In the overturn we have used non-homogeneous proportionalitys to help us steady humble this. The balances be broken down by proportion type with analysis over the tetrad years of data that was given. any(prenominal) ratio is calculated and fol get-going those calculations in that respect is a unequal account discussing the importance. Liquidity proportions [Exhibit 1.2] Year1999200020012002 MHOMHOMHOMHO Current Ratio1.552.731.240.791.531.201.590.79 lovesome Ratio 0.942.320.720.500.960.911.060.60 The live ratio, as we know the functional large(p) ratio or the real ratio, refers to the enterprise of latest assets to ongoing liabilities ratio. The current ratio and strong ratio ar indicators that formulate the corporations before long solvency. Generally speaking, if these ii ratio are higher its representation the corporation has stronger liquidity of the incorporate assets and that short-term solvency is also stronger. Typically, the current ratio should be to a greater extent than 2:1, and the dissolute ratio should be more than 1:1in everyday circumstances. As shown above, the Yunnan Baiyao Group Co.

s current ratio of immix are very immoveable besides lower than the normal standard (2:1). The current ratio and quick ratio of detail office are floating. If the quick ratio is too low it apprize augment the insecurity of short-term debt. If the quick ratio is too high, liquid assets topic up too a good deal money and thus go away increase the opportunity constitute of business investment. Leverage Ratios [Exhibit 1.2] Year1999200020012002 MHOMHOMHOMHO Debt Ratio0.460.120.460.170.440.190.410.19 D/E Ratio 0.940.130.940.210.890.240.800.24 As shown above, when feeling at the debt ratio, since all the debt ratios are stabile, and for merge caller-out the ratios are above 0.4, we can assume that Yunnan Baiyao Group Co.s merge is...If you want to get a full essay, order it on our website: Orderessay

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