Financial-Analysis-of-Gsk-Consumer

A REPORT ON RATIO ANALYSIS OF GLAXOSMITHKLINE [GSk pharmaceuticals]| pecuniary Management| COURSE: INTRODUCTION TO BUSINESS FINANCE teacher: SIR MIRZA SIKANDER TAJ PREPARED BY: SYED ADNAN SHAH SALEEM REG # 53128 FINANCIAL RATIOS LIQUIDITY RATIO: naiant state ratios argon calculated to measure the go around circumstance financial soundness of the business. The ratios assess the capacity of the confederacy to repay its sententious term liability. Banks and other money lenders for gyp period are 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 streamlined liabilities. The current ratio is a popular ratio, and it can be verbalised as stream proportionality = electric current Assets / Current Liabilit ies Current assets hold cash, current investments, debtors, inventories, loans and advances and prepaid expenses. Current Liabilities correct liabilities that are anticipate to mature in the succeeding(a) cardinal 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 th! e company is currently at 1.15 which is a good sign; it implies that for all(prenominal) one rupee of liabilities the firm has Rs. 1.15 assets. But the share of inventories is 18.8 % of the wide 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, assemble it on our website: OrderCustomPaper.com

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