Financial Analysis Hertzs K Annual Form - 1321 Words

Financial Analysis Hertz’s financial statements will be broken down into the key ratios necessary to make investment recommendations. Using a time-series analysis on the trends of these ratios over time, we’ll get a good representation on Hertz’s financial health. First, raw data will be presented based on the findings found on Hertz’s 10-K annual form, as well as diving further into specific key ratios following the raw data. Hertz Global Holdings, Inc. (HTZ): Risk Ratios Short-Term Liquidity Risk Revenues to Cash: This ratio has been steadily, and aggressively increasing over the 3 year period averaging about 70% increase. Days Revenue in Cash: There is a constant decline in this ratio, with an average loss of 40%. Current Ratio: There is a slight positive increasing trend in this ratio, with over 4% growth from 2011-2013. Quick Ratio: This ratio is decreasing slightly per year, with an average of a 4% loss. Operating Cash Flow to Current Liabilities Ratio: Hertz has a positive trend with this ratio, at 106% in 2013. Hertz is finally to the point where it could cover its short-term liabilities with cash flow from their operations. Working Capital Turnover Accounts Receivable Turnover: This ratio decreased, but had a substantial jump to be at 6.35 in 2013. Days Accounts Receivable: Hertz managed to decrease this ratio by 12% over the time frame, meaning they are decreasing the days taken to get their receivables, which is great since their AR turnover increased.