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: tranquil state ratios argon calculated to measure the go or so circumstance financial soundness of the business. The ratios assess the capacity of the caller-up to repay its before long term liability. Banks and other money lenders for piddling period be interested in the on-going assets of the company 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 stream liabilities. The current ratio is a popular ratio, and it can be verbalised as authorized proportionality = latest Assets / Current Liabilities Curr ent assets hold cash, current investments, debtors, inventories, loans and advances and prepaid expenses. Current Liabilities mean liabilities that are anticipate to mature in the following twelve 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 currentl! y at 1.15 which is a good sign; it implies that for both one rupee of liabilities the firm has Rs. 1.15 assets. But the share of inventories is 18.8 % of the nub 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, revision it on our website: OrderCustomPaper.com

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