Financial-Analysis-of-Gsk-Consumer

A REPORT ON RATIO ANALYSIS OF GLAXOSMITHKLINE [GSk pharmaceuticals]| financial Management| COURSE: INTRODUCTION TO BUSINESS FINANCE teacher: SIR MIRZA SIKANDER TAJ PREPARED BY: SYED ADNAN SHAH SALEEM REG # 53128 FINANCIAL RATIOS LIQUIDITY RATIO: eloquent state ratios argon calculated to measure the go or so circumstance financial soundness of the business. The ratios assess the capacity of the high society to repay its briefly term liability. Banks and other money lenders for misfortunate period atomic number 18 interested in the on-going assets of the partnership i.e. short term financial position of the business. The important liquidity ratios are: latest ratio, acid-test ratio and cash ratio. 1. CURRENT RATIO: This is a usual ratio which expresses the relationship between genuine assets and menstruation liabilities. The current ratio is a popular ratio, and it can be verbalised as period proportionality = topical Assets / Cur rent Liabilities Current assets hold cash, current investments, debtors, inventories, loans and advances and prepaid expenses. Current Liabilities fight down liabilities that are anticipate to mature in the close xii months. These comprise (1) loans, secured or unsecured, that are due in the next twelve months and (2) current liabilities and provisions. | 2011(In Cr.)| 2010(In Cr.

)| 2009(In Cr.)| 2008(In Cr.)| 2007(In Cr.)| Total Current Assets (A)| 932.92| 771.90| 808.84| 864.78| 755.42| Total Current Liabilities (B)| 810.46| 682.68| 589.91| 610.84| 569.97| Current Ratio (A/B)| 1.15| 1.13| 1.37| 1.42| 1.33| Analysis: The current ratio of the company is currently at 1. 15 which is a good sign; it implies that for! all one rupee of liabilities the firm has Rs. 1.15 assets. But the share of inventories is 18.8 % of the descend current assets in 2010, lower than the previous year which was at 16.2 % and the cause for current ratio to drop from 1.37 (2009) to 1.13 (2010) is the increase in current liabilities. 2. QUICK...If you loss to get a full essay, differentiate it on our website: OrderEssay.net

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