The Ministry of higher and secondary specialized education of the Republic of

The Ministry of higher and secondary specialized education of the Republic of Uzbekistan
Tashkent Institute Of Finance


Finance


Theme: The calculation of current ratios of “Quvasoysement” Joint stock Company
Student’s name: Murodullayev Alisher MMT-81i

“Quvasoysement” Joint stock Company

INTRODUCTION

We have calculated Profitibility ratios, assets turnover, financial leverage ratios, liquidity ratios in different enterprises and organizations in order to study whether it is risky to finance the companies we chose. My choice is “Quvasoysement” Joint stock Company.

Profitability ratios

Profitability ratios are financial metrics used by analysts and investors to measure and evaluate the ability of a company to generate income (profit) relative to revenue, balance sheet assets, operating costs, and shareholders’ equity during a specific period of time. They show how
well a company utilizes its assets to produce profit and value to shareholders.

A higher ratio or value is commonly sought-after by most companies, as this usually means the business is performing well by generating

revenues, profits, and cash flow. The ratios are most useful when they are analyzed in comparison to similar companies or compared to previous periods. The most commonly used profitability ratios are examined below.

I have calculated the profitability ratios of “Quvasoysement” Joint stock Company that This company’ profitability ratios increased during the 3 years. It means the financial situation of company performed well.

Assets turnover

The asset turnover ratio measures the value of a company's sales or revenues relative to the value of its assets. The asset turnover ratio can be used as an indicator of the efficiency with which a company is using its assets to generate revenue.
The higher the asset turnover ratio, the more efficient a company is at generating revenue from its assets. Conversely, if a company has a low asset turnover ratio, it indicates it is not efficiently using its assets to generate sales.
Typically, the asset turnover ratio is calculated on an annual basis. The higher the asset turnover ratio, the better the company is performing.
The asset turnover ratio tends to be higher for companies in certain sectors than in others. Retail and consumer staples, for example, have relatively small asset bases but have high sales volume—thus, they have the highest average asset turnover ratio. Conversely, firms in
sectors such as utilities and real estate have large asset bases and low asset turnover.
Since this ratio can vary widely from one industry to the next, comparing the asset turnover ratios of a retail company and a telecommunications company would not be very productive.
Comparisons are only meaningful when they are made for different companies within the same sector

I realized from my company’s Asset turn over that this company’s indicators have grown significantly and this means that the company’s position is improving. And also companies ratios imply that the company generated more revenue per dollar of assets.