Master's Theses

Department

Economics, Finance, & Accounting

Degree Name

Master of Science (MS)

Abstract

The financial ratio is one of the more popular methods used in the analysis of a business organization. It is useful in providing indications of problem areas in a business as well as providing indications that a business is performing adequately. The purpose of this study was to conduct a financial analysis of seven farm equipment dealerships in the state of Kansas to determine problem areas in their structure as well as show the well-managed portions of each business. A hypothesis was developed in order to show the operational efficiency of each business and each ratio was tested to determine whether or not the hypothesis was plausible for each individual ratio. The Hypothesis: Hypothesized the value of eleven financial ratios are inferior to the national average attained by dealers in a like category. Actual data from seven farm equipment dealer organizations in Kansas was acquired for the study and eleven financial ratios were used for analysis of the data. The results of the calculated ratios were analyzed as to the trend or pattern being followed. They were also compared to a national average which was attained by dealers in the same volume category. The findings in the study generally support the hypothesis of the author. It was found that the hypothesis was accepted more times than it was rejected, which indicates that the operational efficiency of the majority of the businesses in the study is below the national average attained by concerns of a like nature and category.

Keywords

Business enterprises--Finance, Analysis, Kansas, Farm equipment, Automobile dealerships, Comparisons

Advisor

Richard L. Osborne

Date of Award

Spring 1969

Document Type

Thesis - campus only access

Rights

© The Author(s)

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