Exploring the Financial Ratios: The Case Study of the Famed Chemical Industry Firms in the US

Tsuji, Chikashi

doi:10.5296/csbm.v1i2.6434

Cited by 3 publications

(1 citation statement)

References 12 publications

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“…In a case study on the furniture industry, Traian-Ovidiu and Daniel-Teodor (2013) and Tsuji (2014) made a detailed analysis of a company’s statements to aid those who use them for investment decisions. Their studies focussed on bringing together financial ratios from financial statements and market data from stock markets to see how the indices on the market are influenced by the performance of different rations on the reported statements.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial statement analysis

Mbona

Kong

2019

AJAR

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Purpose The Chinese Telecoms Industry has been rapidly growing over the years since 2001. An analysis of financial performance of the three giants in this industry is very important. However, it is difficult to know how many ratios can be used best with little information loss. The paper aims to discuss this issue. Design/methodology/approach A total of 18 financial ratios were calculated based on the financial statements for three companies, namely, China Mobile, China Unicom and China Telecom for a period of 17 years. A principal component analysis was run to come up with variables with significance value above 0.5 from each component. Findings At the end, the authors conclude how financial performance can be analysed using 12 ratios instead of the costly analysis of too many ratios that may be complex to interpret. The results also showed that ratios are all related as they come from the same statements, hence, the authors can use a few to represent the rest with limited loss of information. Originality/value This study will help different stakeholders who are interested in the financial performance of each company by giving them a shorter way to analyse performance. It will also assist those who do financial reporting on picking the ratios which matter in reflecting the performance of their companies. The use of PCA gives unbiased ratios that are most significant in assessing performance.

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Section: Literature Reviewmentioning

confidence: 99%

Financial statement analysis

Mbona

Kong

2019

AJAR

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Financial Behavior of the Japanese Firms: Before and After the US Lehman Shock

Tsuji¹

2015

ABR

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This*paper*studies*the*financial*behavior*of*the*Japanese*firms*by*focusing*on,* in* particular,* its* difference* before* and* after* the* US* Lehman* shock.* Findings* derived* from* our* analyses* are* summarized* as* follows.* First,* (1)* regarding* the* financial* condition* in* Japan,* after* the* US* Lehman* shock,* the* current* ratio,* the* debt*ratio,*the*capital*adequacy*ratio*of*the*Japanese*firms*clearly*improved.*In* addition,*(2)*the*fixed*assets*ratio*of*the*Japanese*firms*also*clearly*decreased* after* the* Lehman* shock.* Further,* (3)* as* to* the* state* of* investments,* after* the* Lehman* shock,* the* equity* investments* of* the* Japanese* firms* increased* whilst* the*investments*in*bonds*and*real*estates*as*well*as*the*capital*investments*of* the*Japanese*firms*decreased.*

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How Did the Profitability of the Japanese Firms Change? Before, During, and After the Lehman Shock in the US

Tsuji¹

2015

BMR

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This paper investigates the time-series changes of the profitability of the Japanese corporations by focusing, in particular, on their differences in the periods before, during, and after the US Lehman shock. Evidence derived from our analyses using the Japanese time-series data is summarized as follows. 1) First, around the Lehman shock, the ordinary income to equity capital ratio, total asset turnover, and the sales per employee of the Japanese corporations dropped, and after the shock, they recovered; however, their levels did not exceed the levels before the Lehman shock. 2) Second, during the period of the Lehman shock, the labor costs to sales ratio of the Japanese corporations unfavorably increased; however, after the shock, it recovered to almost the same level as that before the Lehman shock. 3) Third, during the Lehman shock, the ordinary income to sales ratio, ordinary income per employee, and ordinary income to labor costs of the Japanese corporations declined; however, after the shock, they recovered and improved to the levels that exceeded those before the Lehman shock. 4) Fourth, the financial leverage of the Japanese corporations continuously decreased regardless of the effects of the Lehman shock.

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Exploring the Financial Ratios: The Case Study of the Famed Chemical Industry Firms in the US

Cited by 3 publications

References 12 publications

Financial statement analysis

Financial statement analysis

Financial Behavior of the Japanese Firms: Before and After the US Lehman Shock

How Did the Profitability of the Japanese Firms Change? Before, During, and After the Lehman Shock in the US

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