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, utility competency, and solvency ratios break-dance about the troupes financial coiffe? liquid ratios argon the ratios that measure the competency of Huffman Trucking to stick in its pathetic term debt obligations. These ratios measure the ability of this bon ton to knuckle under 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 whatsoever metric, a great deal the amount of money invested. They bring out how effectively the profitability of a company is b eing managed. habitual examples of profitability ratios include comeback on sales, proceeds on investment, income tax return on equity, return on capital employed, return on capital invested, pull in profit delimitation 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-term 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 obligations. It provides a measurement of how probably a company will be to continue brush its debt obligations. Users who may be interested in each shell of ratio? Liquidity ratios are employ by suppliers and opposite trade creditors. Profitability ratios are use by customers, Managers, Governments and their agencies. Solvency ratios are used by len ders to help turn in the long-term obligati! ons. Long-term financial soundness of any backup groundwork be...If you want to get a full essay, score it on our website: OrderCustomPaper.com

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