Huffman Trucking Memo to Ceo

| Huffman Trucking| Memo To:Graham Grove, Vice President of industrial Relations From:capital of Minnesota Johnson Director of Accounting CC:Simone Ojeda Accounting Specialist Date: [ 4/9/2012 ] Re:Results from proportion calculations and horizontal and vertical analysis What do the liquidity, scratch competency, and solvency ratios break-dance about the troupes financial mystify? liquid ratios argon the ratios that measure the big businessman of Huffman Trucking to enclose its pathetic term debt obligations. These ratios measure the ability of this accompany to profit hit its short-term liabilities when they fall due. Profitability ratios measures Huffman Truckings ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of the company to generate earnings, profits and cash flows relative to some(prenominal) metric, a great deal the amount of money invested. They high spot how effectively the profitability of a company is being managed. super C examples of profitability ratios include comeback on sales, proceeds on investment, have on equity, return on capital employed, return on capital invested, pull in profit rim and net profit margin. All of these rations usher how well this company is performing at generating profits or revenues relative to a certain metric.

Solvency ratios this is one of many ratios use to measure a companys ability to meet long-run obligations. The solvency ratio measures the size of a companys after-tax income, excluding non-cash depreciation expenses, as compared to the companys total debt obliga tions. It provides a measurement of how pla! usibly a company will be to continue group meeting its debt obligations. Users who may be interested in each typesetters case of ratio? Liquidity ratios are employ by suppliers and another(prenominal) trade creditors. Profitability ratios are use by customers, Managers, Governments and their agencies. Solvency ratios are used by lenders to help turn in the long-term obligations. Long-term financial soundness of any backup apprize be...If you want to get a full essay, score it on our website: OrderCustomPaper.com

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