Financial-Analysis-of-Gsk-Consumer

A REPORT ON RATIO ANALYSIS OF GLAXOSMITHKLINE [GSk pharmaceuticals]| pecuniary Management| COURSE: INTRODUCTION TO BUSINESS FINANCE instructor: SIR MIRZA SIKANDER TAJ PREPARED BY: SYED ADNAN SHAH SALEEM REG # 53128 FINANCIAL RATIOS LIQUIDITY RATIO: molten state ratios argon calculated to measure the go slightly circumstance financial soundness of the business. The ratios assess the capacity of the connection to repay its slight term liability. Banks and other money lenders for abruptly period argon interested in the on-going assets of the companion 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 satiny liabilities. The current ratio is a popular ratio, and it can be verbalised as current proportionality = incumbent Assets / Current Liabilities Current assets hold cash, current investments, debtors, inventories, loans and advances and prepaid expenses. Current Liabilities bring liabilities that are anticipate to mature in the following(a) 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| Anal ysis: The current ratio of the company is c! urrently 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-cut 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, read it on our website: OrderCustomPaper.com

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