Simon Everly PLC Financial analysis and decision making Essay

Simon Everly PLC Financial analysis and decision making - Essay Example INTERPRETATION OF LIQUIDITY RATIOS Liquidity of an organization is its ability to meet its short term duties (obligations), and it is amongst the major measures of organizations’ financial health (Brigham & Ehrhardt 2011). The liquidity ratios for Simon Everly PLC determined in this task involved: Current Ratio and Acid Test Ratio. Interpretation of the Current Ratio This ratio shows the ability of an organization to pay its short liabilities using its short term Assets (Brigham & Ehrhardt 2011). Current ratios of orgainzations should be equal to or more one (1). If the ratio is either equal to one (1) or more than one (1), the organization is capable of satisfying its short term obligations using its current Assets (Brigham & Ehrhardt 2011). A current ratio that is less than 1 (one), on the other hand, means that cannot satisfy the needs of its short term liabilities, and therefore, is facing liquidity problems (Brigham & Ehrhardt 2011). Simon Everly’s Current Ratio Th e current ratios for the organization as of the 2011/12 and 2010/2011 financial years were shown in the below: Current Ratio as of 2011/12 Financial year was 1.72. Current Ratio as of 2010/11 Financial year was 1.94. ... This shows that even though the organization’s current ratio liquidity was more than one (1), it was on the down trend, and if proper actions are not taken on time the organization may be faced with liquidity problems in future. The consequences of this downward trend can be solved by the proposed strategy to obtain more funds for additional investments. Interpretation of the Acid Test Ratio The use of current ratio alone is not sufficient to determine liquidity for organisations since it involve certain current assets such as inventory that may be hard to convert to cash. Therefore, Acid test ratio which eliminates these assets (Assets that are difficult to convert into cash such as inventories) will give the real picture of the organization’s liquidity (financial health) (Thukaram 2007). Its interpretation is same as that of current ratio. That is, if it is more than one the organization is financially healthy in terms of liquidity and vice versa if it is less than on e (Thukaram 2007). Simon Everly’s Acid Test Ratio The Acid Test ratios for the organization as of the 2011/12 and 2010/2011 financial years were shown in the below: Acid Test Ratio as of 2011/12 Financial year was 0.9055 Acid Test Ratio as of 2010/11 Financial year was 1.19. While the Acid Test Ratio for 2010/11 Financial year was more than one (favourable, 1.19), the one for 2011/12 Financial year was less than one (unfavourable, 0.9055). This means the organization was able to meet the all obligations of short term liabilities using its current assets during the 2010/11 financial year. As of the financial year 2011/12 the organization’s liquidity was questionable. Therefore, necessary actions are required in order to improve the organization’s liquidity. It is suggested that the

Special education students revenue, analysis that shows compartive Research Paper

Special education students revenue, analysis that shows compartive costs of educating those students inside the district as opposed to outside the district - Research Paper Example Since each special child has their own way of understanding, the school system tends to provide more learning hours for them. This caring includes adding to the budget of the school what is needed by the child therefore receiving provisions from the federal government. A child with the development disorder will need a tutor for most of their life in order to be self-dependent and the school has to provide. Although intellectual giftedness can benefit from a different program, the term special needs education refers to those that are underprivileged and this reduces their ability for learning. Special education has institutions, but it is also under integration in the education system in developed countries and each school has a program for special needs students. This modification tries to see that the most number of students, even with special needs, receive service from the general education environment for more inclusive learning activities. Some special cases, however, have to receive handling in special schools, which have specific programs for severe cases. Schools in Saddle Brook school district have approval from the New Jersey department of education. The following is a table showing the average enrollment of the school for the past five years ending with the fiscal year June 30 2012. Saddle brook district is financially well off with residential homes occupying most of it. The district is almost 95% developed which means further development is quite hard to implement. With such a huge residential population, it means that the district funds the schools via the local tax base. This means that for all developments in the district, the community is directly responsible and they determine how much the school has to upgrade the programs. The district has several schools despite its consideration as a small suburban district. It has three K-6 elementary schools; long, Smith and Franklin, the Washington school; houses the special