Comparative Advantage - Free Essay Example

Sample details Pages: 7 Words: 1998 Downloads: 10 Date added: 2017/09/12 Category Advertising Essay Did you like this example? Chapter 2 Labor Productivity and Comparative Advantage: The Ricardian Model Chapter Organization  §  §  §  §  §  §  §  §  § Introduction The Concept of Comparative Advantage A One-Factor Economy Trade in a One-Factor World Misconceptions About Comparative Advantage Comparative Advantage with Many Goods Adding Transport Costs and Nontraded Goods Empirical Evidence on the Ricardian Model Summary Slide 2- 2 Prepared by Iordanis Petsas To Accompany International Economics: Theory and Policy Sixth Edition Policy, by Paul R. Krugman and Maurice Obstfeld Copyright  © 2003 Pearson Education, Inc. Introduction  § Countries engage in international trade for two basic reasons: The Concept of Comparative Advantage  §  § On Valentine’s Day the U. S. demand for roses is about 10 million roses. Growing roses in the U. S. in the winter is difficult. †¢ They are different from each other in terms of climate, land, capital, labor, and technology. †¢ They try to achieve scale economies in production.  § The Ricardian model is based on technological differences across countries. †¢ Heated greenhouses should be used. †¢ The costs for energy, capital, and labor are substantial. †¢ These technological differences are reflected in ifferences in the productivity of labor.  § Slide 2- 3 Resources for the production of roses could be used to produce other goods, say computers. Slide 2- 4 Copyright  © 2003 Pearson Education, Inc. Copyright  © 2003 Pearson Education, Inc. The Concept of Comparative Advantage  § Opportunity Cost The Concept of Comparative Advantage  § The principle of comparative advantage: †¢ If each country exports the goods in which it has comparative advantage (lower opportunity costs), then all countries can in principle gain from trade. †¢ The opportunity cost of roses in terms of computers is he number of computers that could be produced with the same resources as a given number of roses.  § Comparative Advantage †¢ A country has a comparative advantage in producing a good if the opportunity cost of producing that good in terms of other goods is lower in that country than it is in other countries.  § What determines comparative advantage? †¢ Answering this question would help us understand how country differences determine the pattern of trade (which goods a country exports). Copyright  © 2003 Pearson Education, Inc. Slide 2- 5 Copyright  © 2003 Pearson Education, Inc. Slide 2- 6 1 Don’t waste time! Our writers will create an original "Comparative Advantage" essay for you Create order A One-Factor Economy  § Assume that we are dealing with an economy (which we call Home). In this economy: A One-Factor Economy  § The constant labor productivity is modeled with the specification of unit labor requirements: †¢ The unit labor requirement is the number of hours of labor required to produce one unit of output. – Denote with a L W the unit labor requirement for wine (e. g. if a LW = 2, then one needs 2 hours of labor to produce one gallon of wine). – Denote with a L C the unit labor requirement for cheese (e. g. if a LC = 1, then one needs 1 hour of labor to produce a pound of cheese). †¢ †¢ †¢ †¢ Labor is the only factor of production. Only two goods (say wine and cheese) are produced. The supply of labor is fixed in each country. The productivity of labor in each good is fixed. Perfect competition prevails in all markets.  § Copyright  © 2003 Pearson Education, Inc. Slide 2- 7 The economy’s total resources are defin ed as L, the total labor supply (e. g. if L = 120, then this economy is endowed with 120 hours of labor or 120 workers). Slide 2- 8 Copyright  © 2003 Pearson Education, Inc. A One-Factor Economy  § Production Possibilities A One-Factor Economy Figure 2-1: Home’s Production Possibility Frontier Home wine production, QW , in gallons †¢ The production possibility frontier (PPF) of an economy shows the maximum amount of a good (say wine) that can be produced for any given amount of another (say cheese), and vice versa. †¢ The PPF of our economy is given by the following equation: aLCQC + aLWQW = L (2-1) L/aLW P Absolute value of slope equals opportunity cost of cheese in terms of wine Copyright  © 2003 Pearson Education, Inc. Slide 2- 9 Copyright  © 2003 Pearson Education, Inc. F L/aLC Home cheese production, QC, in pounds Slide 2- 10 A One-Factor Economy Relative Prices and Supply †¢ The particular amounts of each good produced are determined by prices. †¢ The relative price of good X (cheese) in terms of good Y (wine) is the amount of good Y (wine) that can be exchanged for one unit of good X (cheese). †¢ Examples of relative prices: – If a price of a can of Coke is $0. 5, and the p rice of a chocolate bar is $1, then the relative price of Coke is the amount of chocolate bars that can be exchanged for one unit of Coke, which is 0. 5. – The relative price of a chocolate bar in terms of Coke is 2 cans of Coke per bar. Copyright  © 2003 Pearson Education, Inc. Slide 2- 11 A One-Factor Economy  § Denote with PC the dollar price of cheese and with PW the dollar price of wine. Denote with wW the dollar wage in the wine industry and with wC the dollar wage in the cheese industry. Then under perfect competition, the non-negative profit condition implies:  § †¢ If PW / aW wW, then there is no production of QW. †¢ If PW / aW = wW, then there is production of Q W. †¢ If PC / aC wC, then there is no production of Q C. †¢ If PC / aC = wC, then there is production of QC. Copyright  © 2003 Pearson Education, Inc. Slide 2- 12 2 A One-Factor Economy  § The above relations imply that if the relative price of cheese (PC / PW ) exceeds its opportunity cost (aLC / aLW ), then the economy will specialize in the production of cheese. Trade in a One-Factor World  § Assumptions of the model: †¢ There are two countries in the world (Home and Foreign). †¢ Each of the two countries produces two goods (say †¢ †¢ †¢ †¢ †¢ †¢ wine and cheese). Labor is the only factor of production. The supply of labor is fixed in each country. The productivity of labor in each good is fixed. Labor is not mobile across the two countries. Perfect competition prevails in all markets. All variables with an asterisk refer to the Foreign country. Slide 2- 14  § In the absence of trade, both goods are produced, and therefore PC / PW = aLC /a LW. Copyright  © 2003 Pearson Education, Inc. Slide 2- 13 Copyright  © 2003 Pearson Education, Inc. Trade in a One-Factor World  § Absolute Advantage Trade in a One-Factor World  § Comparative Advantage †¢ A country has an absolute advantage in a production of a good if it has a lower unit labor requirement than the foreign country in this good. †¢ Assume that aLC a*LC and aLW a* LW – This assumption implies that Home has an absolute advantage in the production of both goods. Another way to see this is to notice that Home is more productive in the production of both goods than Foreign. – Even if Home has an absolute advantage in both goods, beneficial trade is possible. †¢ Assume that aLC /aLW a*LC /a*LW (2-2) – This assumption implies that the opportunity cost of cheese in terms of wine is lower in Home than it is in Foreign. – In other words, in the absence of trade, the relative price of cheese at Home is lower than the relative price of cheese at Foreign.  §  § The pattern of trade will be determined by the concept of comparative advantage. Slide 2- 15 Home has a comparative advantage in cheese and will export it to Foreign in exchange for wine. Slide 2- 16 Copyright  © 2003 Pearson Education, Inc. Copyright  © 2003 Pearson Education, Inc. Trade in a One-Factor World Figure 2-2: Foreign’s Production Possibility Frontier Foreign wine production, Q*W, in gallons Trade in a One-Factor World  § Determining the Relative Price After Trade †¢ What determines the relative price (e. g. , P C / PW) after trade? – To answer this question we have to define the relative supply and relative demand for cheese in the world as a whole. The relative supply of cheese equals the total quantity of cheese supplied by both countries at each given relative price divided by the total quantity of wine supplied, ( QC + Q* C )/(Q W + Q *W). – The relative demand of cheese in the world is a similar concept. Slide 2- 17 Copyright  © 2003 Pearson Education, Inc. Slide 2- 18 L*/a*LW F* +1 P* L*/a*LC Foreign cheese pro duction, Q*C , in pounds Copyright  © 2003 Pearson Education, Inc. 3 Trade in a One-Factor World Figure 2-3: World Relative Supply and Demand Relative price of cheese, P C/PW a* * LC/a LW Trade in a One-Factor World  § The Gains from Trade If countries specialize according to their RS 1 aLC/aLW 2 RD Q L/aLC L*/a*LW RD comparative advantage, they all gain from this specialization and trade. †¢ We will demonstrate these gains from trade in two ways. †¢ First, we can think of trade as a new way of producing goods and services (that is, a new technology). Copyright  © 2003 Pearson Education, Inc. Relative quantity of cheese, Q C + Q *C QW + Q*W Slide 2- 19 Copyright  © 2003 Pearson Education, Inc. Slide 2- 20 Trade in a One-Factor World †¢ Another way to see the gains from trade is to consider how trade affects the consumption in each of the two countries. The consumption possibility frontier states the maximum amount of consumption of a good a country can obtain for any given amount of the other commodity. †¢ In the absence of trade, the consumption possibility curve is the same as the production possibility curve. †¢ Trade enlarges the consumption possibility for each of the two countries. Copyright  © 2003 Pearson Education, Inc. Slide 2- 21 Trade in a One-Factor World Figure 2-4: Trade Expands Consumption Possibilities Quantity of wine, Q W T Quantity of wine, Q*W F* P F Quantity of cheese, Q C T* P* Quantity of cheese, Q *C (a) Home Copyright  © 2003 Pearson Education, Inc. b) Foreign Slide 2- 22 Trade in a One-Factor World  § Relative Wages Misconceptions About Comparative Advantage  § Productivity and Competitiveness †¢ Because there are technological differences between the two countries, trade in goods does not make the wages equal across the two countries. †¢ A country with absolute advantage in both goods will enjoy a higher wage after trade. †¢ Myth 1: Free trade is beneficial only if a country is strong enough to withstand foreign competition. – This argument fails to recognize that trade is based on comparative not absolute advantage.  § The Pauper Labor Argument Myth 2: Foreign competition is unfair and hurts other countries when it is based on low wages. – Again in our example Foreign has lower wages but still benefits from trade. Copyright  © 2003 Pearson Education, Inc. Slide 2- 23 Copyright  © 2003 Pearson Education, Inc. Slide 2- 24 4 Misconceptions About Comparative Advantage  § Exploitation Comparative Advantage with Many Goods Figure 2-5: Determination of Relative Wages Relative wage Rate, w/w* Apples 10 8 Bananas RS †¢ Myth 3: Trade makes the workers worse off in countries with lower wages. – In the absence of trade these workers would be worse off. Denying the opportunity to export is to condemn poor people to continue to be poor. 4 3 2 0. 75 Caviar Dates Enchiladas RD Relative quantity of labor, L/L* Copyright  © 2003 Pearson Education, Inc. Slide 2- 25 Copyright  © 2003 Pearson Education, Inc. Slide 2- 26 Empirical Evidence on the Ricardian Model Figure 2-6: Productivity and Exports Summary  § We examined the Ricardian model, the simplest model that shows how differences between countries give rise to trade and gains from trade. In this model, labor is the only factor of production and countries differ only in the productivity of labor in different industries. In the Ricardian model, a country will export that commodity in which it has comparative (as opposed to absolute) labor productivity advantage. Slide 2- 28  §  § Copyright  © 2003 Pearson Education, Inc. Slide 2- 27 Copyright  © 2003 Pearson Education, Inc. Summary  § The fact that trade benefits a country can be shown in either of two ways: Summary  § Extending the one-factor, two-good model to a world of many commodities makes it possible to illustrate that transportation costs can give rise to the existence of nontraded goods. The basic prediction of the Ricardian model-that countries will tend to export goods in which they have relatively high productivity- has been confirmed by a number of studies. Slide 2- 30 †¢ We can think of trade as an indirect method of production. †¢ We can show that trade enlarges a country’s consumption possibilities.  §  § The distribution of the gains from trade depends on the relative prices of the goods countries produce. Slide 2- 29 Copyright  © 2003 Pearson Education, Inc. Copyright  © 2003 Pearson Education, Inc. 5

Human Trafficking Is Destroying America - 1057 Words

Slavery in the Twenty-First Century Human trafficking is the modern day form of slavery and its victims are, most commonly, the children of America (Kotria). The youth and millennials in this country are America’s future, the next generation’s guides into the world, and thousands of them every year are being taken and becoming victims to human trafficking within the U.S. These children are the backbone of America, within them could lie the greatest minds, most inspiring actors, and even a life changing president. But their abusers rip away this potential, they take away their right to a free life, where they control their own decisions. Human trafficking is destroying America’s future leaders and workers by exterminating these people’s†¦show more content†¦Ã¢â‚¬Å"Others have been forced to perform sexual acts in exchange for drugs or money by parents or relatives, a practice dubbed ‘familial prostitution(Kotria). Some of the most common trafficking recruitment sites are restau rants, traveling sales companies, online jobs, malls, bus stations, and general public places where lost youth are most likely to be found(â€Å"Statistics†). Human traffickers take advantage of the lost youth’s troubled circumstances. We need to be helping them, not letting them get cornered into a lifetime of unwilling servitude. The populace of America needs to be made aware of this growing issue that’s victimizing thousands each year, so that we can begin to fight it effectively. The Polaris Project is one such force fighting the war on trafficking. An organization who combats human trafficking by spreading awareness of this unspeakable crimes to prevent it from happening in the first place. They support victims who need help putting their lives back together after these atrocities, and move on with their lives. For example, because hotel industries are the number one culprit for human trafficking sites, The Polaris Project collaborates with hotel business executives and managers to teach them how to recognize the signs of workers or customers who might be involved in the human trafficking industry(Myles). They educate these powerhouses and their employees on how to spot and remove themselves or their

Quantitative Analysis of AGL Energy ltd. and Genesis Energy ltd

Question: Discuss about the Report for Quantitative Analysis of AGL Energy ltd. and Genesis Energy ltd. Answer: Introduction Genesis energy ltd. It is a energy company which varies the range of products that offers services to customers and provide them the energy solution in a very simple and smart way. This company was established in 1998 and started its operation on 1st April 1999.This company produce electricity with the help of number of generation assets, trade electricity and natural gas. The genesis energy ltd. is the largest retailer company of electricity and gas in the New Zealand and has the customer connection which is more than 636,676. This company belongs to the renewable energy and the operation is done in three hydro power schemes that are Tongariro, waikaremoana and Takeo. This company also belongs to the Hau Nui Wind Farm in the Wairarapa. This company also produces thermal energy and their Huntly power station has the largest capacity to produce electricity which is facilitating in New Zealand. This power station is established by the two modern gases that is fired and two coal gas and has the fired gener ating units also. They have their contribution in Kupe joint venture about 31% interest and the operation is done in Taranaki in the field of Kupe oil and gas. Kupe is the most important part of the business which generates sources for electricity and gas and provides it to the customers in a varied way. This company purchase electricity from the electricity market and sell it in that market only in New Zealand. The generators sell the electricity in the market and the retailers buy that and sell the electricity generation to the customers. The selling of the natural gas is done by the company in the North-island to the residential and commercial customers and it is also sold to the wholesale natural gas market to get the surplus. They also sale LPG which is acquired from Kupe to the customers in New Zealand. As per the customer needs and requirements they provide the smart energy for the electricity and gas. This company also offers the first class customer service as per the requi rements. This company also provides electricity to all type of business even to the rural enterprises also. They have the business team which supports the commercial customers. AGL energy ltd. This company was established in 1837 and is the oldest company of the Australia. This company adopts new things and believes in creation for the sustainable and reliable energy which is provided to the customer. They believe in change and do work for the community and for the environment. This company established the first gas street lamp in the Sydney in the year 1841 and now it has the largest solar plant in Australia which was established in 2015. It is the largest owner of the listed ASX and does operation for generating electricity in the country. This company also support and has the contribution in the organization. It is the integrated energy company which leads in Australia. This company takes the responsibility for the reduction of greenhouse gas emissions and offers the safe and secure energy to the customer which can be afford by the customer. This company has the experience of 175 years and with these experiences it offers the gas, electricity, solar PV and related product and services to the customer as per their needs and requirements in the Eastern Australia. It has the portfolio of power generation like base, peaking, intermediate generation plant which is spread among the thermal generation along with the renewable sources like hydro, wind, solar, landfill gas and biomass. Statement of profit and loss Of AGL Energy ltd for the year ended 30 June 2015 2015 2014 $m $m continuing operation Revenue 10678 10445 Expenses -9759 -9165 share of profit of associates and joint venture 27 25 profit before net financing costs, depreciation and amortization 946 1305 depreciation and amortization -379 -326 profit before net financing cost 567 979 finance income 20 24 finance cost -250 -243 net financing cost -230 -219 profit before tax 337 760 income tax expense -119 -190 profit for the year 218 570 profit attributable to: owners of AGL energy ltd. 218 570 non-controlling interest 218 570 earnings per share basic earnings per share 33.3cents 98.2cents diluted earnings per share 33.3cents 98.2cents Statement of financial position Of AGL Energy ltd. As at 30june 2015 2015 2014 $m $m current assets cash and cash equivalents 259 456 trade and other receivables 1894 1902 Inventories 396 191 other financial assets 156 114 other assets 262 318 2967 2981 assets classified as held for sale 492 430 total current assets 3459 3411 non-current assets trade and other receivables 44 46 Inventories 32 28 other financial assets 596 484 investment in associate and joint ventures 91 32 exploration and evaluation assets 130 372 oil and gas assets 544 170 property, plant and equipment 6958 5694 intangible assets 3266 3248 deferred tax assets 682 631 other assets 31 18 total non-current assets 12374 10723 total assets 15833 14134 current liabilities trade and other payable 1377 1417 Borrowings 443 45 Provisions 191 101 deferred tax liabilities 86 49 other financial liabilities 269 477 other liabilities 7 2373 2089 liabilities directly associated with assets classified as held for sale 77 total current liabilities 2373 2166 non-current liabilities borrowings 3439 3669 Provisions 456 106 deferred tax liabilities 50 other financial liabilities 387 280 other liabilities 363 275 total non-current liabilities 4645 4380 total liabilities 7081 6546 net assets 8815 7588 equity issued capital 6696 5437 reserves -65 -99 retained earnings 2175 2249 total equity attributable to owners of AGL Energy limited 8806 7587 non-controlling interests 9 1 total equity 8815 7588 Statements of Cash flow Of AGL Energy ltd. for the year ended 30june 2015 2015 2014 $m $m cash flow from operating activities receipts from customers 11587 11791 payments to suppliers and employees -10236 -10733 dividend received 32 26 finance income received 24 23 finance cost paid -216 -217 income taxes paid -147 -191 net cash provided by operating activities 1044 699 cash flow from investing activities payments for property, plant and equipments -744 -624 payments for exploration and evaluation assets -34 -28 payments for oil and gas assets -28 -46 payments for investments in associates and joint ventures -80 payments for intangible assets -25 payments for business and subsidiaries, net of cash acquired acquisition in current period -1348 -79 acquisition in prior periods -32 -33 government grant received 32 190 proceeds from sale of property, plant and equipment 6 2 loan advanced to related parties 3 -126 proceeds from repayment of related party loans 56 net cash used in investing activities 2175 -769 cash flow from financing activities proceeds from issue of shares, net of transaction costs 1210 1 proceeds from issue of shares to non-controlling interest 8 1 purchase of shares on- market for equity based remuneration -7 -6 proceeds from borrowings 2647 2075 repayments of borrowings -2580 -1547 payments for settlement of derivative financial instruments -10 dividend paid -344 -269 net cash provided by financing activities 924 255 net(decrease)/increase in cash and cash equivalents -207 185 cash and cash equivalents at the beginning of the financial year 466 281 cash and cash equivalents at the end of the financial year 259 466 Comprehensive income statement Of Genesis Energy ltd. for the year ended 30 June 2015 2015 2014 $m $m operating income electricity revenue 1730.4 1661.1 gas revenue 282.9 251.3 petroleum revenue 64.7 84.4 other revenue 19.6 8.2 2097.6 2005 operating expenses electricity purchase, transmission and distribution -953.7 -897.7 gas purchase and transmission -297.1 -249.8 petroleum production, marketing and distribution -26.1 -30.6 fuels consumed -187.4 -191.3 employee benefits -80.6 -89.2 other operating expenses -207.9 -238.6 -1752.8 -1697.2 earnings before net finance expense, income tax, depreciation, depletion, amortization, impairment, fair value changes and other gains and losses 344.8 307.8 depreciation, depletion and amortization -155.7 -156.7 impairment of non-current assets -14 -10.1 change in fair value of financial instruments 32.1 0.4 other gains(losses) -0.2 -1.6 -137.8 -168 profit before net finance expense and income tax 207 139.8 finance revenue 1.3 0.9 finance expense -68 -69.1 profit before income tax 140.3 71.6 income tax (expense) -35.5 -22.4 net profit for the year 104.8 49.2 other comprehensive income items that may be reclassified subsequently to profit or loss change in cash flow hedge reserve -20.1 5 income tax credit (expense) relating to items that may be reclassified 5.6 -1.4 total items that may be reclassified subsequently to profit or loss -14.5 3.6 total other comprehensive income (expense) for the year -14.5 3.6 total comprehensive income for the income 90.3 52.8 earnings per share from operations attributable to shareholders of the parent basic and diluted earnings per share(cents) 10.49 4.92 Balance sheet Of Genesis energy ltd. as at 30 June 2015 2015 2014 current assets $m $m cash and cash equivalents 21 23.3 receivables and prepayments 187.7 216.4 inventories 80 93.8 assets held for sale 3.1 intangible assets 4.3 3.9 tax receivables 16.2 derivatives 34.2 19.9 total current assets 346.5 357.3 non-current assets receivables and prepayments 0.9 0.9 inventories 24.4 34.1 property, plant and equipments 2682.5 2758.8 oil and gas assets 292.4 342.1 intangible assets 127.4 128.2 derivatives 53.9 8 total non-current assets 3181.5 3272.1 total assets 3528 3629.4 current liabilities payables and accruals 158.3 194.8 tax payable 3.4 borrowings 117.8 12.3 Provisions 12.3 13.6 Derivatives 21.5 22.5 total current liabilities 309.9 246.6 non-current liabilities payables and accruals 0.7 0.7 borrowings 840.4 977.1 Provisions 123.7 126.9 deferred tax liability 397.2 384.2 Derivatives 30.7 13.2 total non-current liabilities 1392.7 1502.1 total liabilities 1702.6 1748.7 shareholders equity share capital 539.7 539.7 Reserves 1285.7 1341 total equity 1825.4 1880.7 total equity and liabilities 3528 3629.4 Cash flow statement Of Genesis energy ltd. For the year ended 30 June 2015 2015 2014 $m $m cash flow from operating activities cash was provided from : receipts from customers 2122 2055.1 interest received 1.3 0.9 2123.3 2056 cash was applied to : payments to suppliers and related parties 1687.6 1649.7 payments to employees 81 89.1 tax paid 36.2 13.3 1804.8 1752.1 net cash inflows from operating activities 318.5 303.9 cash flow from investing activities cash was provided from: proceeds from disposal of property, plant and equipments 1.3 0.4 proceeds from disposal of oil and gas assets 0.1 1.3 0.5 cash was applied to: purchase of property, plant and equipment 35.5 66.5 purchase of oil and gas assets 4.1 1.2 purchase of intangible(excluding emission units ) 10.3 15.7 49.9 83.4 net cash (outflow) from investing activities -48.6 -82.9 cash flow from financing activities cash was provided from: proceeds from borrowings 193 167.1 193 167.1 cash was applied to : repayments of borrowings 256.1 195 interest paid and other finance charges 61.6 66.6 repayment of principal on finance lease liabilities 1.6 4 dividends 145.9 121 acquisition of treasury shares 0.9 465.2 387.5 net cash(outflow)from financing activities -272.2 -220.4 net increase(decrease) in cash and cash equivalents -2.3 0.6 cash and cash equivalents at 1 July 23.3 22.7 cash and cash equivalents at 30 June 21 23.3 Ratio analysis of both companies Genesis Energy ltd 2015 2014 ROA 5.87% 3.85% ROE 5.74% 0.02616047 N/P Margin 5.00% 1.36% G/P margin 9.87% 6.97% cash flow to sales revenue 15.18% 15.16% current ratio 1.118103 1.44890511 quick ratio 346.2419 356.919627 interest coverage ratio -2.06324 -1.0361795 debt to equity ratio 48.26% 48.18% equity ratio 51.74% 51.82% debt ratio 48.26% 48.18% EPS 10.49 4.92 assets T/O ratio 0.594558 0.55243291 days inventory 13.92067 17.0758105 days debtor 32.66137 39.3945137 times inventory T/O 26.22 21.3752665 times debtor T/O 11.17528 9.26524954 debt coverage ratio 4.372684 4.94274432. Return on assets is more in 2015 as compare to 2014 because income of the year and the total assets is high in 2015 as compared to 2014. Net profit ratio is also increased in 2015 as compared to 2014 because company earns a good profit and generates revenue. Current ratio has been decreased in 2015 to 2014. Quick ratio is low in 2015 as compared to 2014. Debt equity ratio is high in 2015 as compared to 2014. Equity ratio is low in 2015 as compared to 2014.Earnings per share is high in 2015 as compared to 2014. AGL Energy ltd. 2015 2014 ROA 2.13% 5.38% Net profit ratio 2.04% 5.46% quick ratio 3458.833 3410.912 current ratio 1.457649 1.574792 debt to equity ratio 80.33% 86.27% equity ratio 55.67% 53.69% EPS 33.3 98.2 ROE 2.48% 7.51% G/P Margin 5.31% 9.37% cash flow to sales ratio 9.78% 6.69% assets T/O ratio 0.674414 0.738998 days inventory ratio 1.093838 0.978459 days debtor ratio 64.74152 66.46529 times inventory T/O 26.96465 54.68586 times debtor T/O 5.637804 5.491588 debt ratio 44.72% 46.31% interest coverage ratio -1.46522 -3.47032 debt coverage ratio 4.449234 6.266094 The return on assets ratio, net profit ratio, current ratio, debt to equity ratio and earnings per share is low in 2015 as compared to 2014 and the quick ratio and the equity ratio is high in 2015 as compared to 2014. Conclusion The genesis energy ltd. is financially good as compared to AGL energy limited. As the ratio analysis has been done which shows the position of both the companies and according to that analysis, the conclusion has been made. Both the companies is performing well but after comparison Genesis energy limited is quite good against AGL energy limited. Recommendation The investor should invest in Genesis energy limited as this company earning more profit in 2015 as compared to 2014. The AGL Energy limited is also performing well, thus the investor can also invest in that also. Both the companies are financially good and have the good reputation in market and achieve many targets and the oldest company of the Australia. References Genesis energy (2015), Genesis energy annual report 2015, retrieved on 22 august 2016 from https://www.asx.com.au/asxpdf/20150904/pdf/4313hvljxkcz9m.pdf ASX Release (2015), AGL annual report 2015, retrieved on 22 august 2016 from https://www.asx.com.au/asxpdf/20150826/pdf/430t27pwhhbmr3.pdf Chand, S (2015), Ratio analysis: meaning, classification and limitation of ratio analysis AGL energy in action, our company, retrieved on 22 august 2016 from https://www.agl.com.au/about-agl/who-we-are/our-company Genesis energy (2016), about us-company information, retrieved on 22 august 2016 from https://www.genesisenergy.co.nz/company-information

Ratatouille de la Green Beans; America’s New Specialty free essay sample

It was October 9, 2007 in the city of Lehi, Utah. At home, Marianne Watson contemplated on the ever-nagging question; what’s for dinner? A sigh escaped from her mouth, as well as her heart, as she realized it would be green beans again for dinner. Her weary feet somehow found strength and she got up and slowly trudged to the kitchen. She heard a crash and one of children began to wail. She merely glanced towards where the cries were coming from, and continued to search for the can of beans. The squeaky hinges on the old cupboard cried as she opened it in search of a can. To her relief, there was one can left. The expiration date was still good, so she got out the can-opener and popped off the lid. In the other room where the old china vase had shattered, little Annie’s sobs ceased for one moment, enough time for her to draw in another breath. We will write a custom essay sample on Ratatouille de la Green Beans; America’s New Specialty or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Annie became surprised, for it wasn’t her scream that came next, but her mother’s! She wiped her tear stricken face and ran to the kitchen. There she found her mother looking horrified at a can of green beans. Inside the can, lay the head of none other than the pesky rodent we call, a rat. Though this story may seem ridiculous, it really did happen. Yes, the dinnertime and little girl part is fake, but the rest is true. Marianne Watson of Lehi, Utah indeed found a rat’s head in her can of green beans purchased from Wal-Mart. Is this what America has become? A country where we have to be on our toes making sure the food we eat is safe? It’s almost an undeniable fact that America’s food supply is not safe. People are finding animals and body parts in their food, diseases are popping up frequently in our food supply, and it appears that the FDA either won’t start believing that there is a problem or if they’re recognizing a problem they are unwilling to address it. America is not supposed to be this way; we should be one of the last countries plagued with a problem like this. Animals and unwanted body parts really should stay out of the food we eat. There are so many other stories, just like the one about the can green beans. The Deseret News Publishing Company had an interesting article on this topic. There was a snakehead in an Iowa family’s can of green beans, the same story for a Pennsylvania man named Earl Hartman. Brenda Eisenberg from Illinois found an â€Å"amphibian leg† in her can of green beans in November of 2005. Dave Pierce of Alpine, Utah found a ? inch long worm in his fruit cocktail a couple of years ago. Clarence Stowers from Wilmington, North Carolina found a severed first knuckle in her custard dessert from Kohl’s Frozen Custard. The shocking thing though is that the FDA allows rodent hairs and worm fragments to slip into processed food. The can company’s justificati on for the rat head incident is that it’s sterile. A spokesman for the company explains that they cook each can at 265 degrees and any germs would have been killed. Do they really expect us to eat the rat head because it’s sterile? Of course the can would be thrown out because who cares if it’s sterile, it’s a rat’s head for crying out loud! That would sure go down well with a tail and some whiskers! Who knows where the rest of the rodent body went. Maybe someone else had it in their can of green beans and just thought the beans were extra crunchy. Yes, it is true that the rat head was of no harm, but if a rat head can get into our food, then what other dirty things could? That definitely shows that America’s food isn’t safe if unwanted objects are popping up in our food supply. We shouldn’t have to deal with disgusting nonsense like this. On another equally serious note, horrible and even fatal diseases are being found in foo d regularly. A website held by the Food Safety Legislation says that â€Å"each year millions of people become ill and up to 5,000 people die from contaminated food.† The New York Times just ran an article on this. They’ve said that salmonella, a potentially fatal illness, is constantly running through America’s chicken and egg supply. E.-coli bacteria was found in California produce last year, specifically in spinach. Diseases and pesticides like these not only make the food supply unsafe, but deadly. Not to point fingers, but let’s face it, the FDA just hasn’t been doing so great of a job. In the 1970’s, the FDA wasn’t sure of how much aflatoxin should be used in food because there was a problem with our peanuts. The FDA now twenty years later still hasn’t made up their minds. People are getting sick and even dying because they won’t simply sit down and come up with better guidelines. Yes, it’s not as simple as just sitting down once and talking it over, but if it’s been twenty years and they still can’t make up their minds on certain pesticide levels, then they definitely are to blame. America’s food just isn’t safe anymore, especially if the people in charge of its safety aren’t doing a good job. Lack of time is no excuse any more for why we can’t fix the guidelines. Something needs to be done, not next week, month, year, or decade, but now! So what can we as people do while the FDA sorts out their issues? Watching the news for food poisoning recalls and warnings is a good start for staying safe. Cutting down on red meats and foods that are constantly having trouble with diseases is also good. In addition, watch what you eat. Make sure there isn’t a pair of beady little rat eyes watching, waiting to be digested. It is truly embarrassing that America has a problem like this. People are indeed finding rat heads and other unnecessary things in their food, diseases are killing, and the FDA isn’t helping. It may be a while until we fix this growing issue, but until then we will have to deal with our furry little rodent friends swimming laps in our green beans. Just think of it as the prize at the bottom of the cereal box. Works Cited Cspinet.org, Food Safety Legislation. November 28, 2007 Davidson, Adam. â€Å"How Safe is Supermarket Food?† NPR. November 21, 2007 http://www.npr.org/templates/story.php?stroyld=11833228 Herndon, Michael. â€Å"Spinach and E. Coli Outbreak† U.S. Food and Drug Administration. November 21, 2007 Robinson, Doug. Deseret News.com, Deseret Morning News. November 26, 2007 Spurlock, Morgan. Don’t Eat This Book: Fast Food and the Supersizing of America. New York: G.P. Putham’s Sons, 2005.