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Memo

To: Huffman Trucking CEO

From: Accounting Date: Re: Ratio Analysis

The Huffman Trucking Company’s current assets rose to 4 !"# from $%!"# consistent &ith the attache' calculations of analysis of (ertical an' hori)ontal! An increment of !*%+# can ,e seen from year - to year . &hile looking at the Huffman Trucking Company’s total Assets! As - to year ./ for the organi)ation/ it is a positi(e

the organi)ation is 'e(elope' in from year -

sign! Con(ersely/ in the pre(ious fi(e years/ Huffman Trucking Company’s current lia,ilities sho&e' an increment to $+!0# from $-!0#! From year - to year ./ an increase of ! 00# - to ./ a 'rop

can ,e seen in the long term lia,ilities! 1n the pre(ious fi(e years/ from year -

to -"!4+# from $0!.-# can ,e seen in the Total E2uity of sharehol'er! 1n the Huffman Trucking Company’s total lia,ilities/ an increase of !*%+# can ,e seen! 3o(ing in the 'irection of Huffman Trucking Company’s income statement/ an increase of !0+$# is sho&n ,y the hori)ontal analysis in the re(enues! On the other han'/ there is also an increment of !0"*# in the company’s operating e4penses! 1n relation to the company’s (ertical analysis/ a 'rop to $!. # from 4!*-# can ,e seen in the organi)ation’s operating income! A 'rop to -!*+$# from -!-%# can also ,e seen in the total income of the Huffman Trucking Company! 5y taking a look at the organi)ation’s li2ui'ity ratio it 'emonstrates &hether the organi)ation is capa,le of paying ,ack short6term 'e,ts or not! 1n such form of ratio/ cre'itors &oul' ,e in(ol(e'! The picture of profita,ility ratios 'emonstrates the performance of the profit that helps in 'e(eloping the organi)ation’s success! This ratio &oul' ,e helpful for those in'i(i'uals &ho

ility of the organi)ation for paying off the long6term 'e.os Angles an' &ith the intention of 'oing that/ the organi)ation ha(e to keep on fin'ing a''itional techni2ues for 'ecreasing their current lia.en'ers/ 8rofita.y the Huffman Trucking Company! The 'e(elopment is cause' .ts is the 7ol(ency ratios! The sol(ency ratios of the Huffman Trucking Company concerne' &ith the organi)ation’s sharehol'ers an' the long6term cre'itors! 1n each category of ratios of Huffman Trucking company/ mostly tra'ers/ cre'itors/ suppliers/ or other staff is concerne'/ for e4ample: 8rofita.i2ui'ity ratio 9 7uppliers/ :earing ratios 9 .are from outsi'e of the organi)ation for e4ample cre'itors an' in(estors! The capa.ility 6 Customers an' 3anagers! Capital Employe' ratio 9 Employees! The 'ata gathere' 'iscloses that o(er the pre(ious fe& years/ a tremen'ous gro&th has .ility ratio 9 :o(ernment! .ilities or increasing their current assets! .y ha(ing long term contracts of :o(ernment for plastics manufacturing an' pops an' mom &ineries! 1n the in'ustry/ Huffman Trucking Company has al&ays .een e4perience' .ouis/ an' .een a frontrunner/ an' the main concern of the organi)ation is to satisfy the nee's of the customers! Huffman Trucking Company struggles for staying on top &ith e4pan'ing its locations in <e& =ersey/ Cle(elan'/ 7t! .

ilities ? @0*/""$ A @0./ $!0 !!"!#$ -*-/-*"! 5eginning Total Assets --%/%++! En'ing Total Assets 44 / :ran' Total Di(i'e: .Huffman Trucking Liquidity Ratios Current Ratio: Current assets>Current lia.to get the a(erage Average Total Assets %%&'&& "( & %! - <et 1ncome Di(i'e: <et 7ales *"/-**! +%"/"44! .les>Current lia.ilities ? @***/%-+>@++/+-% ? *!-0+ Cash A accounts recei(a./-"->@++/+-% ? @* +/-+0>@++/+-% ? *!-*" Quick Ratio: Huffman Trucking Profitability Ratios @ +%"/"44! 7ales Re(enue Di(i'e: A(erage Total Assets Assets Turnover -.

> @%" ? 4 !* Times .t > Total Assets B1n Thousan'sC ? B@++/+-% A @%*/%"$C > @--%/%++ ? % !0# Times interest earned ? 1ncome .Profit Margin %")*$ <et 1ncome Di(i'e: Total Assets Return on Total Assets 1ncome .efore 1nterest E4pense Di(i'e: 1nterest E4pense Times interest earned ratio *"/-**! --%/%++! *"+ $ $*/% -! %" ! +&") Huffman Trucking .efore 1ncome Ta4es an' 1nterest E4pense > 1nterest E4pense B1n Thousan'sC ? @$*/% .olvency Ratios -ebt to total assets ?Total De.