Financial Statement Analysis Financial Analysis - 759 Words

Woolworth Financial Analysis Financial statement analysis assists a business entity, business shareholders and other people interested, to analyze the figures in financial statements to present them with superior information about such most important factors for decision making and ultimate business survival. As exemplified by Gibson (2001), income statement, balance sheet, and cash flow statements project the financial performance a company at the present and probably the future. According to the annual report 2014, Woolworth’s revenue is projected to rise by 4.09% annually. The group’s financial performance for the past four years is shown below. Table 1: Woolworths Limited Year Revenue AUD in millions Growth % 2010-11 54280 2011-12 55441 2.14 2012-13 58674 5.83 2013-14 60952 3.88 Average growth rate 3.95 The above table demonstrates a general idea of Woolworth’s revenue and growth all over a three-year period. It is equally important to recognize the financial position and operational results in which were the follow-on behind Woolworths’s steady growth. As a result, to identify these factors, the following ratios are used to evaluate Woolworths’ financial position and results of operations. ï‚ § Company Profitability ratio ï‚ § Liquidity ratio ï‚ § Activity ratio ï‚ § Financial Leverage Ratios 1. Company Profitability ratio As exemplified by Baker Powell (2005), profitability ratio assesses how successful a corporation has been in meeting its general revenue goals,Show MoreRelatedThe Implications Of Bank Specialization On Its Financial Statement Analysis1097 Words   |  5 PagesWhen making a financial analysis on a bank, the type of business it conducts need to be considered. Specialization can lead a bank to operate in different practices and have a varied structure of their balance sheet. 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Phenomenon Of Gandhi - Free Essay Example

Sample details Pages: 8 Words: 2489 Downloads: 5 Date added: 2019/08/06 Category People Essay Level High school Tags: Mahatma Gandhi Essay Did you like this example? The Indian nationalist movement was one of the greatest modern nonviolent protests to ever occur. Not only where Hindus fighting for Home rule but also Muslims and other faiths as well. Gandhi played a huge role in the image of nationalism for India. Don’t waste time! Our writers will create an original "Phenomenon Of Gandhi" essay for you Create order He dressed in a way that drew attention towards him in the struggle for nationalism and home rule. Some see Gandhi as a saint and others see him in a less glorious light. His ideas of Hind Swaraj and of Soul Force where the driving ideas behind his peaceful protest of British rule. The Indian nationalist movement took care of the question of British rule. It was through Gandhis teachings and practices that Indians were able to acquire home rule for their own country. The idea behind Gandhis nonviolent protest is an idea that resonates through history. The Indian nationalist movement formally began in 1885 with the creation of the Indian national Congress. It was an organization of like-minded politically driven Indian men who had the idea of separation from Britain on their minds. Although the movement would grow, and the ideals would change, originally the Indian national Congress had a very moderate stance on political issues. The early moderate nationalists of the movement were just as keen to work with the British as they were to work against them. It would have been unwise to insight anger against the Indian national Congress from the British at this point in the congresss life. By working within the confines of British law to establish the Indian national Congress they were able to lay the foundations for a less moderate way of thinking to come about. The willingness of the Congress to work with the British showed how much they were willing to do in the name of nationalism. As the nationalist movement progressed it took on a more aggressive tone. It had moved from a more moderate viewpoint two one they can be called an extremist Point of view. The growth of the nationalist movement began to draw in new faces that were keener on aggressive action. The fact that the British set up these younger individuals to learn and be educated under there ideals and in their system pave the way for the ideals of nationalism to prosper in India. With the partition of Bengal in 1905 the Indians were able to see that Britain was not so invested in Indian nationalism. This is when the extremist view of nationalism really kicked off. The supporters of this view saw the old moderate way as being too friendly with the British. They wanted the Spirit of India to stay Indian instead of being Britainised. Gandhis rise to fame began in south Africa. Gandhi had studied in England and was a skilled lawyer. He traveled to South Africa to set up a practice and be a lawyer. While living in South Africa Gandhi was able to see discrimination and prejudice towards other people especially blacks. It was at this time the economy began to use his tactics of nonviolent protest to achieve his goals. This technique has never been seen before by the British people. While Gandhi was in South Africa he dressed as an Englishman. You have been trained in learned in England, so this is the way that he should have been dressing. However, when he left South Africa to come back to India he started to dress more humbly. He began to wear robes and handmade clothes. This was a display of defiance towards the English crown. It worked out great for Gandhi because his image change from someone in high society to a person who can be related to by every walk of life. In Gandhis book Hind Swaraj, he takes a slightly different approach as most books. The book is formatted in a way that there is a reader and editor. The reader is seen as a normal Indian person that supports nationalism and is fed up with the British rule. The editor of course is seen as the words of Gandhi. Theres a back-and-forth debate in the book between the reader and the editor on important issues in the nationalist movement. Throughout this book Gandhi talks about things such as the partition of Bengal, what swaraj is, and the condition of India. The book does an outstanding job at questioning the mainstream ideals of nationalism in India at the time. Gandhis perspective on the issues facing the nationalist movement were extremely important. When Gandhi asks, Do you think that it is necessary to drive the English away? (Hind Swaraj Pg. 21) the response is somewhat of a mainstream one from the reader. That he would ask them to, Please leave the country (Hind Swaraj Pg. 21). The book continues this theme throughout its entirety. Is very important to be able to see both sides of this debate. It is also very important to see the differences between Gandhis way of thinking and the mainstream way of thinking of most nationalists in the nationalist movement. Gandhis condemnation of modern civilization is the most intriguing aspect of the book. This civilization takes note neither of morality nor of religion. (Hind Swaraj Pg. 26). Gandhi being a religious man obviously advocated for religion to play a big part in society. Civilization in the way that he describes it has no place for religion and in some places condemns it. He also goes on to say that, Parliaments are emblems of slavery. (Hind Swaraj Pg. 27). It is my understanding that Gandhi is speaking here about the nature of submission the parliament has on its people. Not only is the Parliament slave to the Will of the British hierarchy but also the people slaves to the will of the Parliament. Its interesting to hear this kind of critique of civilization due to the fact that most people do not think this way but his is very valid and is quite interesting. When Gandhi is asked about the condition of India, he obviously makes it known that India is in very poor condition. He states that, In thinking of it my eyes water and my throat gets parched. (Hind Swaraj Pg. 29). However, when Gandhi speaks of the reason why India is in such a horrible state, he attributes this to modern civilization and not the British. The reason he says this as he continues on is also once again due to religion. He speaks about how civilization and industrialization has led Britain to think that Indians are a lazy people (Hind Swaraj Pg. 30). Gandhi talks about how in many mainstream religions, we should remain passive about worldly pursuits and active about Godly pursuits. (Hind Swaraj Pg. 30). It is clear to see that Gandhis major problem with civilization is that it takes away from pursuing godly things. The reader goes on to task about how people killing others in the name of their religion is any better than that of civilization. Gandhis reply is simple yet extremely meaningful. He replies that, Everybody understands that the cruelties that you have named are not part of religion although they have been practiced in its name. (Hind Swaraj Pg. 30). The argument that Gandhi is making here has been made time and time again. There are those who commit atrocities and to kill and torture in the name of their God. People in general are quick to make assumptions about the entire religion based on things wouldve been done in the name of that religion by a select few. To say that one small group of people and the way that they behave speak for the entire majority is at its core ignorance. Gandhi does not deny the fact that there is violence committed in the name of religion however he makes it clear this violence committed in the name of religion is not violence That is condoned by that religion. This concept is extremely important to the nationalist movement due to the fact that most people that nationalist movement are religious individuals. Gandhis idea of peaceful protest must be the way that the nationalist movement moves forward if they are to truly be religious men. Another one of Gandhis issues is with the railways. He remarks upon the fact that Railways spread in the plague. He goes on to say that, we had natural segregation. (Hind Swaraj Pg. 32) He is saying that before the railways there was natural segregation due to the inability for people to move around and spread diseases that were localized to their region. With the introduction of the railway to India, people were able to move freely from place to place spreading these diseases throughout the land. We have even seen this here in America with the introduction of mass forms of travel in the settling of the west, vast amounts of indigenous people were wiped out from diseases brought from afar. In this aspect one can agree with Gandhi on his dislike for civilization. It causes those who are not a part of it to suffer at the hands of the civilization. This way of thinking about the railways helped the nationalists see that the railways may be helping those who are in power but in turn kill s those who have not. In this book Hind Swaraj, the reader asks about the relationships between Hindus and Muslims. Gandhis reply is one that not many agreed with. Gandhi advocated for Hindus and Muslims to coexist peacefully. This was a notion that many in the nationalist movement or not for. The country must have a facility for assimilation. (Hind Swaraj Pg. 35). It is gone his belief that although religions may have different practices that the endgame of those religions are much in the same. This aspect would have to be one of the most important aspects of not only Gandhis Book wouldve also his believes towards the nationalist movement. The nationalists up to this point hat Had a difficult time working together due to the aspect of religion. The nationalist can learn much from Gandhi in his believes that working together religiously in that they could come together and create a more unified movement and gain more followers and support in doing so. Gandhi now talks about the correlation between brute force and home rule. The argument by the reader is that the achievements that Britain has won has been with the use of brute force. The reader argues that if Britain gained its greatness off of the back of brute force why shouldnt India do the same. Gandhis argument is a simple one, he states that the means to an end is always important. If you gain home rule but do so violently what comes after will also inherently be violent regardless. Gandhis argument for non-violent protest makes a lot of sense in this way. If you attain self-rule but through the means of violence and destruction what comes after cannot be a good thing. The nationalist movement had at times become somewhat extremist and that they would advocate for violence against the British in order to obtain self-rule. If they were to go about doing this without having somewhat of a moderate way of thinking, then they would be crushed by the might of the British. When Gandhi talks about the soul force of men he speaks directly to the very soul. He talks about the fact that it is the most important thing, much more important that brute force or violence. He says in relation to Soul Force that, The greatest and most unimpeachable evidence of the success of this force is to be found in the fact that, in spite of the wars of the world, it still lives on. (Hind Swaraj Pg. 57). Gandhi had some ground-breaking ideas when it comes to this idea. That if we change how people view each other and take away the element of violence and try to love and understand those who we would oppose or those who would oppose us then we can begin to truly understand that person and their beliefs and maybe even agree with them. Gandhi ends the book very well by talking about what he would personally say to all of the members in question that the reader talks bout throughout the book. He talks to the Moderates and to the Extremists and how there is a problem between the two in that the two have good ideas, but they have to meet a healthy medium in their beliefs. This would have a great benefit to the nationalist movement in the fact that it would take both groups and find a common ground in which they can both unite towards Home rule. Gandhi then goes on to talk about what he would say to British. Gandhi states that, I have no objection to you staying in my country, but although you are the rulers, you will have to remain as servants to the people. (Hind Swaraj Pg. 72) Gandhi states that he has no problem with allowing the British to be in India, but they have to take charge and be servants of the people. The must take responsibility for the people and not just for themselves. That they must respect the reli gions of the people and take them into account when making laws. Also, that the spending of Indian national money is to be put towards interests of Indians and not of the British Crown. If it were not for M K Gandhi the nationalist movement would have only been a group of Indian men who are more British than they were Indian talking about a nation full of people that they did not understand and were in some ways not a part of themselves. Gandhi was able to create a way of thinking in which violence did not have to be the first resort for home rule. Gandhi can be attributed with saving thousands of lives through his implementation of nonviolent protest. India could have turned into the wild West so to speak if they more extremist point of view had been adopted. On the other hand, if there had only been a moderate way of thinking in Nationalist movement in India then it may never have gained its independence. As we spoke in class, we brought it up a few dark things about Gandhi and how he believed about blacks in South Africa. This issue cannot be ignored, nor will it be ignored but in the case of Indian Independence Gandhi was an invaluable resource and is questionable if Indian Independence would have been able to be attained if it were not for Gandhi and his way of thinking. Indian nationalism was changed when Gandhi was introduced in the whole world was changed as well. Hind Swaraj remains one of the greatest writings of Gandhi and also of modern literature. It is a reading from a man that is to be learned from for generations to come.

Abercrombie and Fitch and the Moral Degradation of...

Abercrombie and Fitch and the Moral Degradation of America This past month I made my last visit to the popular teenage/college student retail store Abercrombie and Fitch. Finishing up some back to school shopping, I was on a quest for jeans, and I knew the place to get them. My last two favorite pairs were from Abercrombie and Fitch, and I was planning on buying the same kind once again. Happy and relieved that I would not spend the afternoon ransacking the mall for one pair of jeans, I entered the store to the pulsating beat of techno dance music. In front of me was the teenage Mecca of what is truly hip -- the first thing I noticed were the life-size pictured that covered the walls -- half-clad muscular and glistening young†¦show more content†¦Overwhelmed by the stimuli, I set out to find the jeans I wanted as quickly as possible. Searching through pile and rack, I found Wide leg tomboy, Tomboy flare, and Bootcut tomboy, but none of the plain Tomboy I has previously owned. Disappointed and a little disgusted, I left th e store empty handed. It was not so much that I had failed to find my jeans that upset me, but rather the realization that this store had somehow reached a point where it was controlling the minds of my fellow young shoppers. The store I had just left seemed to be advertising more than Tomboy flares and wool V-neck sweaters -- the music, the pictures on the wall, the salespeople -- they all set the level of what is cool just a little bit higher, while the customers mindlessly followed. Then next week I was reading the Star Tribune newspaper when I came across and editorial written about Abercrombie and Fitch. The author was disgusted with the store because of its blatant promotion of college-age drinking. The issue came up in one of AFs quarterly magazines. Instead of sending out free catalogs of their merchandise to customers, AF sells a retail magazine which they distribute four times a year for the small fee of five dollars per issue. The magazine is filled with pictures similar to the life-size ones which cover the store walls -- tan, beautiful and

Interest Rates Essay Example For Students

Interest Rates Essay Interest rate essay Causes ofcan be explained as -deferred consumption. When money is loaned the lender delays spending the money on consumption goods. Since according to time preference theory people prefer goods now to goods later, in a free market there will be a positive interest rate. Inflationary expectations. Most economies generally exhibit inflation, meaning a given amount of money buys fewer goods in the future than it will now. The borrower needs to compensate the lender for this. Alternative investments. The lender has a choice between using his money in different investments. If he chooses one, he forgoes the returns from all the others. Different investments effectively compete for funds. Risks of investment. There is always a risk that the borrower will default on the loan. This means that a lender generally charges a risk premium to ensure that, across his investments, he is compensated for those that fail. Liquidity preference. People prefer to have their resources available in a form that can immediately be exchanged, rather than a form that takes time or money to realize. Taxes. Because some of the gains from interest may be subject to taxes, the lender may insist on a higher rate to make up for this loss. The nominal interest rate is the amount, in money terms, of interest payable. The real interest rate, which measures the purchasing power of interest receipts, is calculated by adjusting the nominal rate charged to take inflation into account. There is a market for investments which ultimately includes the money market, bond market, and stock market and currency market as well as retail financial institutions. The CAPM returns the asset-appropriate required return or discount rate i.e. the rate at which future cash flows produced by the asset should be discounted given that assets relative riskiness. Betas exceeding one signify more than average riskiness; betas below one indicate lower than average. Thus a more risky stock will have a hi gher beta and will be discounted at a higher rate; less sensitive stocks will have lower betas and be discounted at a lower rate. The CAPM is consistent with intuition investors (should) require a higher return for holding a more risky asset. Since beta reflects asset-specific sensitivity to non-diversifiable, i.e. market risk, the market as a whole, by definition, has a beta of one. Stock market indices are frequently used as local proxies for the market and in that case (by definition) have a beta of one. An investor in a large, diversified portfolio (such as a mutual fund) therefore expects performance in line with the market. The risk of a portfolio is comprised of systematic risk and specific risk. Systematic risk refers to the risk common to all securities i.e. market risk. Specific risk is the risk associated with individual assets. Specific risk can be diversified away (specific risks average out); systematic risk (within one market) cannot. Depending on the market, a portfolio of approximately 15 (or more) well selected shares might be sufficiently diversified to leave the portfolio exposed to systematic risk only. A rational investor should not take on any diversifiable risk, as only non-diversifiable risks are rewarded. Therefore, the required return on an asset, that is, the return that compensates for risk taken, must be linked to its riskiness in a portfolio context i.e. its contribution to overall portfolio riskiness as opposed to its stand alone riskiness. In the CAPM context, portfolio risk is represented by higher variance i.e. less predictability. Exactly how these markets function is a complex question. However, economists generally agree that the interest rates yielded by any investment take into account:?The risk-free cost of capital ?Inflationary expectations ?The level of risk in the investment ?The costs of the transaction The risk-free cost of capital is the real interest on a risk-free loan. While no loan is ever entirely risk-free, bills issued by major nations like the United States are generally regarded as risk-free benchmarks. The Accident That Changed My Life EssayIt is a common misconception that EMH requires that investors behave rationally. This is not in fact the case. EMH allows that when faced with new information, some investors may overreact and some may under-react. All that is required by the EMH is that investors reactions be random enough that the net effect on market prices cannot be reliably exploited to make an abnormal profit. Under EMH, the market may, in fact, behave irrationally for a long period of time. Crashes, bubbles and depressions are all consistent with efficient market hypothesis, so long as this irrational behavior is not predictable or exploitable. Or in other terms, an efficient market is defined as a market where there are large numbers of rational, profit-maximizers actively competing, with each trying to predict future market values of individual securities, and where important current information is almost freely available to all participants. In an efficient market, competition among the many intelligent participants leads to a situation where, at any point in time, actual prices of individual securities already reflect the effects of information based both on events that have already occurred and on events which, as of now, the market expects to take place in the future. In other words, in an efficient market at any point in time the actual price of a security will be a good estimate of its fundamental value. There are three forms of the efficient market hypothesis 1.The Weak form asserts that all past market prices and data are fully reflected in securities prices. In other words, technical analysis is of no use. 2.The Semi-strong form asserts that all publicly available information is fully reflected in securities prices. In other words, fundamental analysis is of no use. 3.The Strong form asserts that all information is fully reflected in securities prices. In other words, even insider information is of no use. Securities markets are flooded with thousands of intelligent, well-paid, and well-educated investors seeking under and over-valued securities to buy and sell. The more participants and the faster the dissemination of information, the more efficient a market should be.