On JB Hunt’s balance sheet for 2011 lists current assets of $ 513. 542. 000 and current liabilities of $ 438. 515. 000. giving a current ratio of 1. 17. which indicates the company. has $ 1. 17 of current assets for every $ 1 of current liabilities. The old twelvemonth 2010. the current ratio was 0. 91. This shows a 29 % addition in the current ratio over the old twelvemonth. An organisation with a current ratio of 2 or higher is normally viewed by loaners to be a safe hazard for short-run recognition. Based on the 29 % addition in current ratio. JB Hunt is in a better place to obtain short-run fiscal than it was in 2010. However. it is still below the benchmark of 2 that loaners feel to be a safe hazard. Under the economic fortunes of the past five old ages. loaners may take into consideration other factors such as comparing JB Hunt’s current ratio to that of other viing trucking companies. JB Hunt’s quick ratio for 2011 is 0. 95 and for 2010 was 0. 70. A speedy ratio or “acid-test” steps hard currency. securities. and histories receivables of a company in comparing to its current liabilities. The speedy ratio is particularly of import to companies that have a history of challenges with change overing stock list into hard currency rapidly. This trouble could interfere with the company’s ability to pay its short-run debt.

A speedy ratio between 0. 50 and 1. 0 is typically perceived as satisfactory. but with a shadow of possible cash-flow jobs. JB Hunt’s quick ratio improved by 36 % over the old twelvemonth. which indicates the company. has improved its ability to run into its short-run duties. JB Hunt’s debt to shareholders equity ratio for 2011 is 299 % and 242 % for 2010. This ratio evaluates the extent to which the company relies on borrowed money for its operations. A ratio over 100 % indicates a concern has excessively much debt and non plenty equity to pay off the debt if they all of a sudden needed to make that. With a debt to equity ratio of 299 % . JB Hunt has a significantly high degree of debt when compared to its equity. Investors and loaners would most likely position the company to be excessively hazardous to either invest in or to impart money to.

JB Hunt’s basic net incomes per portion ratio for 2011 is 1. 07 and 0. 79 for 2010. This ratio indicates the sum of net income the concern earned for each portion of outstanding common stock. The net incomes per portion ratio reveal net incomes that potentially stimulate the growing of a company and supply financess. which can be distributed as a dividend to shareholders. JB Hunt’s basic net incomes per portion increased by 35 % over the old twelvemonth. which indicates the company has money to reinvest to light farther growing. JB Hunt’s return on gross revenues ratio for 2011 is 94 % and 92 % for 2010. This ratio indicates if the company is maintaining gait with or transcending its rivals in bring forthing income from gross revenues and services.

JB Hunt increased its gross revenues ratio by 2 % over last twelvemonth. A 94 % gross revenues ratio is an highly high figure compared with the other three companies analyzed for this assignment. To find how competitory this ratio is with the ratios of other hauling companies would necessitate extra research and analysis of more companies. which is outside the range of this assignment. JB Hunt’s return on equity ratio for 2011 is 45 % and 35 % for 2010. This ratio assesses hazard by bespeaking how much a company earned for each dollar invested by stockholders. JB Hunt’s equity ratio of 45 % is a profitable ratio particularly since investors consider a ratio over 15 % to be a sensible return. In add-on this ratio is an addition of 29 % over the old twelvemonth.

UFP Technologies ( Plastics fabrication )

The 2011 balance sheet for UFP Technologies lists current assets of $ 58. 040. 394. 000 and current liabilities of $ 9. 465. 304. 000. giving a current ratio of 6. 13. which indicates the company. has $ 6. 13 of current assets for every $ 1 of current liabilities. The old twelvemonth 2010. the current ratio was 47. 62. This shows a important addition in the current ratio over the old twelvemonth. which is due to assets acquired in 2010 due to an acquisition. An organisation with a current ratio of 2 or higher is normally viewed by loaners to be a safe hazard for short-run recognition. Based on a current ratio that is more than 3 times what is considered to be a safe hazard. UFP Technologies seems like it will hold no problem obtaining short-run recognition should the demand arise. UFP Technologies’ quick ratio for 2011 is 4. 80 and for 2010 was 36. 12. This company has an outstanding quick ratio that is 4 times what is typically perceived as satisfactory.

Based on this ration UFP Technologies should hold no job with hard currency flow or with paying its short-run debt. UFP Technologies’ debt to shareholders equity ratio for 2011 is 29 % and 38 % for 2010. This ratio indicates that the company has a low per centum of debt compared to its equity and does non trust on borrowed money to run its operations. Investors and loaners would most likely position the company to be a safe investing or a safe company to impart money to on a short-run footing. UFP Technologies’ basic net incomes per portion ratio for 2011 is 0. 77 and 0. 72 for 2010. The company’s basic net incomes per portion increased by 7 % over the old twelvemonth. which indicates the company has some money to reinvest for farther growing. UFP Technologies’ return on gross revenues ratio for 2011 and 2010 is 12 % .

There was no alteration in this ratio from the old twelvemonth. This ratio indicates the company may non be maintaining gait with its rivals in bring forthing income from gross revenues and services. UFP Technologies’ return on equity ratio for 2011 is 17 % and 18 % for 2010. This ratio assesses hazard by bespeaking how much a company earned for each dollar invested by stockholders. UFP Technologies’ equity ratio of 17 % is a profitable ratio particularly since investors consider a ratio over 15 % to be a sensible return. However. the ratio decreased by 5. 5 % over last which may be upsetting to stockholders who are looking for an addition in this ratio twelvemonth after twelvemonth and non a lessening.

United Natural Foods. Inc. ( Specialty nutrient shops )

United Natural Foods’ balance sheet for 2011 lists current assets of $ 8. 444. 492. 000 and current liabilities of $ 463. 421. 000. giving a current ratio of 18. 22. which indicates the company. has $ 18. 22 of current assets for every $ 1 of current liabilities. The old twelvemonth 2010. the current ratio was 1. 37. This shows a 1. 229 % addition in the current ratio over the old twelvemonth. An organisation with a current ratio of 2 or higher is normally viewed by loaners to be a safe hazard for short-run recognition. With a current ratio of 18. 22 United Natural Foods would decidedly be position favourably by loaners if the demand arose to seek short-run recognition. United Natural Foods’ quick ratio for 2011 is 0. 59 and for 2010 was 0. 44. The speedy ratio is particularly of import to companies that have a history of challenges with change overing stock list into hard currency rapidly. A speedy ratio between 0. 50 and 1. 0 is typically perceived as satisfactory. but with a shadow of possible cash-flow jobs. Although a speedy ration of 0. 59 is an betterment over last twelvemonth. this figure is still low and indicates United Natural Foods may see fiscal trouble. which could interfere with the company’s ability to pay its short-run debt.

United Natural Foods’ debt to shareholders equity ratio for 2011 is 61 % and 98 % for 2010. This ratio evaluates the extent to which the company relies on borrowed money for its operations. A ratio over 100 % indicates a concern has excessively much debt and non plenty equity to pay off the debt if they all of a sudden needed to make that. With a debt to equity ratio of 61 % . which is a lessening of 37 % over the old twelvemonth. United Natural Foods has significantly decreased its dependence on borrowed money to fund its operations. This makes the company more appealing to either investors or loaners since the decrease in this ratio indicates the company is less of a hazard than it was a twelvemonth ago. United Natural Foods’ basic net incomes per portion ratio for 2011 is 0. 80 and 0. 79 for 2010. This ratio indicates the sum of net income the concern earned for each portion of outstanding common stock. The company’s basic net incomes per portion increased by 1. 2 % over the old twelvemonth. which indicates the company is traveling in the right way toward increasing the net incomes per portion so that it can reinvest in the company and turn the company in the hereafter.

This per centum is really a good index of grow sing the province of the economic system over the past 5 old ages. United Natural Foods’ return on gross revenues ratio for 2011 and 2010 is 3 % . This ratio indicates the company is keeping the position quo and produced the same sum of income from gross revenues and services this twelvemonth that it did last twelvemonth. This could be due to the volatile economic conditions forestalling new clients from shopping at United Natural Foods because they need to happen manner to cut costs. United Natural Foods’ return on equity ratio for 2011 is 9 % and 11 % for 2010. This ratio assesses hazard by bespeaking how much a company earned for each dollar invested by stockholders. United Natural Food’s equity ratio for 2011 reduced by of 2 % . which is a dissatisfactory figure for stockholders. Investors consider a ratio over 15 % to be a sensible return.

Wells Fargo ( Mortgage Company )

Wells Fargo’s balance sheet for 2011 lists current assets of $ 1. 313. 867 million dollars and current liabilities of $ 920. 070 million dollars. giving a current ratio of 1. 43. which indicates the company. has $ 1. 43 of current assets for every $ 1 of current liabilities. The old twelvemonth 2010. the current ratio was 1. 48. This shows a 3. 4 % lessening in the current ratio over the old twelvemonth. An organisation with a current ratio of 2 or higher is normally viewed by loaners to be a safe hazard for short-run recognition. Based on the current ratio. Wells Fargo is a hazardous company for any loaner. Under the economic fortunes of the past five old ages. loaners may take into consideration other factors such as comparing Wells Fargo’s current ratio to that of other viing companies. Wells Fargo’s quick ratio for 2011 is 0. 07 was 0. 11. A speedy ratio or “acid-test” steps hard currency. securities. and histories receivables of a company in comparing to its current liabilities. A speedy ratio between 0. 50 and 1. 0 is typically perceived as satisfactory. but with a shadow of possible cash-flow jobs. Wells Fargo’s quick ratio is 0. 43 points below the minimal degree of satisfactory.

This company is badly at hazard of non being able to change over stock list into hard currency rapidly and may stop up defaulting on its short-run debt. This is a hazardous company for investors and loaners. Wells Fargo’s debt to shareholders equity ratio for 2011 is 827 % and 884 % for 2010. This ratio evaluates the extent to which the company relies on borrowed money for its operations. A ratio over 100 % indicates a concern has excessively much debt and non plenty equity to pay off the debt if they all of a sudden needed to make that. With a debt to equity ratio of 827 % . Wells Fargo has an astronomical degree of debt when compared to its equity. Investors and loaners evidently view this company as a concern to avoid. Wells Fargo’s basic net incomes per portion ratio for 2011 is 1. 50 and 1. 18 for 2010. This ratio indicates the sum of net income the concern earned for each portion of outstanding common stock.

The net incomes per portion ratio reveal net incomes that could potentially excite the growing of a company and supply financess. which can be distributed as a dividend to shareholders. Wells Fargo’s basic net incomes per portion increased by 27 % over the old twelvemonth. which indicates the company may hold some money to reinvest back into the company for growing. Wells Fargo’s return on gross revenues ratio for 2011 is 48 % and 36 % for 2010. This ratio indicates if the company is maintaining gait with or transcending its rivals in bring forthing income from gross revenues and services.

Wells Fargo increased its gross revenues ratio by 12 % over last twelvemonth. A 48 % return on gross revenues ratio is a high figure. This ration indicates that the company is doing paces to be competitory once more. Wells Fargo’s return on equity ratio for 2011 is 11 % and 10 % for 2010. This ratio assesses hazard by bespeaking how much a company earned for each dollar invested by stockholders. Investors consider a ratio over 15 % to be a sensible return. A ratio of 11 % is let downing to investors. However. it is a little betterment over the old twelvemonth. So the company may be working on drawing itself back up and larning how to go profitable and attractive to loaners and investors one time once more.

Mentions

Raibom. C. A. ( 2010 ) . Core Concepts of Accounting ( 2nd ed. ) . : John Wiley & A ; Sons Inc. . Annual Reports. hypertext transfer protocol: //www. sec. gov. day of the month retrieved 06/28/2012