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Posted By Admin @ Mar 02, 2022

Tittle: Report on Ratio Analysis of Bank of New York Mellon and Bank of America Corporation

Type: Report

Subject: Finance

APA

ABC

Institute

Ratio Analysis

• Asset Management Ratio of Bank of New York Mellon and Bank of America Corporation

Asset management ratios of Bank of New York Mellon and Bank of America Corporation are presented below for two-year performances (2016 and 2017). Inventory turnover ratio of Bank of New York Mellon (12.81% and 13.23%) is greater than Bank of America Corporation (6.17% and 5.53%) in both years 2016 and 2017 which indicate that Bank of New York Mellon has sold more inventory as compared to Bank of America Corporation.

Bank of New York Mellon

 2017 2016

Inventory Turnover 12.81% 13.23%

Day's Sales Outstanding 14.32 13.60

Fixed Assets Turnover 33.6% 34.8%

Total Assets Turnover 4.2% 4.6%

Bank of America Corporation

 2017 2016

Inventory Turnover 6.17% 5.53%

Day's Sales Outstanding 390 420

Fixed Assets Turnover 20.1% 18.0%

Total Assets Turnover 2.5% 2.3%

Day’s sales outstanding ratio of Bank of New York Mellon is 14.32 and 13.60 for 2017 and 2016 respectively. Fixed asset turnover ratio of Bank of New York Mellon greater than Bank of America Corporation is an indicator of asset utilization efficiency. Bank of New York Mellon is earning more revenue from fixed assets as compared to its spending. Similar to the fixed asset turnover ratio, total asset turnover ratio of Bank of New York Mellon is also higher than the ratio of Bank of America Corporation. A greater ratio of total asset turnover show capabilities of managerial staff in asset utilization planning to generate revenue. Comparing these asset utilization ratios it can be concluded that Bank of New York Mellon asset utilization strategies is better as compared to competitor Bank of America Corporation (Finance.yahoo.com, 2019).

• Solvency Ratio of Bank of New York Mellon and Bank of America Corporation

Debt and solvency ratios are based on debt to assets and time interest earned ratios of Bank of New York Mellon and Bank of America Corporation. See the presented below table for Bank of New York Mellon.