The purpose of this study was to compare the effectiveness of the current ratio and the cash conversion cycle in evaluating working capital cash flows from a diagnostic and a predictive aspect.The author analyzed two case studies. Each company was reviewed over a five-year period. For each company the writer calculated the annual current ratio and the cash conversion cycle and examined the trends over the five-year periods under review.Results of these analyses indicated that the cash conversion cycle was more effective than the current ratio in diagnosing the health of each company’s working capital cash flows. The cash conversion cycle also signaled a change in liquidity earlier than the current ratio, suggesting that the former had more effective predictive capabilities than the latter. The central implication of these findings is that the cash conversion cycle might be a more useful diagnostic and predictive tool than the current ratio in liquidity analysis.The research findings were also consistent with improvement or deterioration in each company’s underlying strategic performance as measured by critical changes in its competitive position at the same point in time as the cash conversion cycle trend shifted.These results suggest that the cash conversion cycle may provide insights into the impact of planned product-market strategy on shareholder value.

Master of Agribusiness / Department of Agricultural Economics / Michael Langemeier / This thesis had two objectives. One objective was to compare one northeast Kansas farm's financial performance from 2002 through 2011 to various groups of farms participating in the Kansas Farm Management Association (KFMA) during the same period. The second objective was to compare the crop acreage growth trends of the same northeast Kansas farm from 2002 through 2011 to the same groups of farms participating in the KFMA. In this thesis the northeast Kansas farm was referred to as ABC Farm. The purpose of this thesis was to provide ABC Farm's owners and management with information that could be used to formulate long-term goals for ABC Farm and to help identify strategies for achieving those goals. ABC Farm's 10-year financial performance was compared to six different KFMA member groups using 12 different financial measures or ratios. The KFMA groups included all NE region farms, NE region farms in the highest value of farm production (VFP) category, STATE irrigated crop farms, NE region farms in the highest net farm income quartile, NE region farms in the highest crop acreage category, and NE region farms in the lowest adjusted total expense ratio quartile. The 12 financial measures or ratios included VFP, net farm income, adjusted total expense ratio, operating profit margin ratio, asset turnover ratio, percent return on assets, VFP per worker, total crop acres farmed, crop machinery investment per crop acre, crop machinery cost per crop acre, current ratio, and debt to asset ratio. ABC Farm's 10-year average financial performance was better than the 10-year average of any KFMA group for most financial measures. ABC Farm's VFP, net farm income, operating profit margin ratio, VFP per worker, total crop acres, and current ratio were all higher than any KFMA group. ABC Farm's adjusted total expense ratio, crop machinery cost per crop acre, and debt to asset ratio were also lower than those of the various KFMA groups compared to. ABC Farm did not compare favorably to other KFMA groups for some of the financial measures. ABC Farm's average crop machinery investment per crop acre was higher than every group. ABC Farm's average asset turnover ratio was lower than every group. ABC Farm's average return on assets was lower than all but one group, all NE region farms.

This work focuses on application of financial analysis and analysis of operating results, describes asset and financial structure of the organization, utilizes the analytical results for evaluation of the organization effectiveness, and helps with selection of the appropriate corporate strategy.

The thesis describes a stochastic procedure developed for assessing risk and reducing uncertainty inherent in the investment decision making process. It is proposed that the two most important profitability financial ratios in relation to investment decisions are the return on equity and the return on assets respectively. In order to exploit their use as criteria for risk measurement and uncertainty reduction, a stochastic formulation is adopted in which these ratios are expressed in probabilistic terms. A density function to describe their behaviour is derived; it is found that density distribution analysis for both ratios indicate that the Weibull distribution apart from being the most flexible and adaptable model of all those considered, provides the best overall fit to the data. It is accordingly used in the latter part of the research for evaluating industrial sector and company investment risk.

This thesis deals with the financial analysis of the selected company from the perspective of an external analyst. The work is divided into theoretical and practical parts. In the theoretical section describes the methods and procedures for financial analysis. The practical part of the financial analysis of the selected company and the evaluation of the found results, including recommendations. It also includes intercompany evaluation. In the final part of the overall evaluation of the results of the financial analysis.

Abstract Background - Bankruptcy is an issue that not only affects the company that is registered as bankrupt, but also the society since it has an impact on the economy. Previous studies have been focusing on larger listed companies outside of Sweden hence there is a lack of empirical findings about Swedish companies in this research area. Small and medium companies represent most of the Sweden's labor force and therefore the bankruptcy issue is important to investigate for these companies. Purpose - The purpose of the thesis is to find out which financial information distinguishes bankrupt from non-bankrupt companies in Sweden. In other words, which financial ratios have predictive power on bankruptcy. Furthermore, the thesis wants to provide knowledge towards current and future companies so that they can avoid bankruptcy by paying attention to the ratios distinguished in the thesis and keeping the ratios at an acceptable level. Method – The thesis conducts the research with a quantitative strategy by observing financial information from companies’ annual reports. The logistic regression model is used to test for the 11 ratios, by matching two samples; bankrupt and non-bankrupt companies, as well as a classification matrix, Pearson correlation matrix and variance inflation factor. The bankrupt companies selected, are classified as bankrupt for the period 2016-2019. The thesis implements a deductive approach to establish expectation and deduct which financial ratios are predictive. Conclusion - The thesis ends up with 92 companies, where 46 are bankrupt and 46 are nonbankrupt. Out of the 11 ratios, three are statistically significant and have predictive power on bankruptcy. These three are; debt rate, gross profit margin and, cash and cash equivalents. The debt rate has a positive effect on bankruptcy, which means that a higher debt rate increases the risk of bankruptcy. Gross profit margin and cash and cash equivalents have a negative effect on bankruptcy; as they increase, the risk of bankruptcy decreases.

This study develops a bankruptcy prediction model for South African companies listed on the Johannesburg Stock Exchange. The model is of considerable efficiency and the findings reported extend bankruptcy literature to developing countries. 64 financial ratios for 28 companies, grouped into failed and non-failed companies, were tested using multiple discriminant analysis after conducting normality tests. Three variables were found to be significant which are: Times Interest Earned, Cash to Debt and Working Capital to Turnover. The model correctly classified about 75% of failed and non-failed in the original and cross validation procedures. This study went on to conduct an external validation of the model superiority by introducing a sample of failed companies, which showed that the model predictive accuracy is more than chance. Despite the popularity of the topic among researchers this study highlighted the importance and relevance of the topic to corporate managers, policy makers and to investors especially in a developing market perspective, thereby contributing significantly towards understanding the factors that lead to corporate bankruptcy.

The thesis describes a stochastic procedure developed for assessing risk and reducing uncertainty inherent in the investment decision making process. It is proposed that the two most important profitability financial ratios in relation to investment decisions are the return on equity and the return on assets respectively. In order to exploit their use as criteria for risk measurement and uncertainty reduction, a stochastic formulation is adopted in which these ratios are expressed in probabilistic terms. A density function to describe their behaviour is derived; it is found that density distribution analysis for both ratios indicate that the Weibull distribution apart from being the most flexible and adaptable model of all those considered, provides the best overall fit to the data. It is accordingly used in the latter part of the research for evaluating industrial sector and company investment risk.

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Thesis focuses on financial analysis and its possible application in daily practice. It presents a number of indicators that can be used as an instrument for financial management of comapny. These indicators, indexes and models are then applied in the analysis of the firm MOTOR JIKOV Strojírenská a.s., based in Tábor. Resulting values are simultaneously compared with rated optimal divide for engineering industry. Further is effected analysis some significant indicator on partial indices and rated their influence over total indicator. Last step those financially analyses is comparing resulting values behind year 2006 with occupational average for year 2006 in engineering industry. Last is there foreshadowed possibility exclusion or reducing some one of specific negative phenomenon, which would be able to significantly influence incoming development those companies in future. All ascertained results are processed in form tables and in detail ocommented. Information for processing those diploma work was pump concrete from jubilee news, internet and special literature. The aim of diploma work is refer to financial analysis like on necessary resource for assesment values equity capital and at the same time like on important method predikcion of economic development analysed equity capital.