A Great Impact Of Fracking On USA - Free Essay Example

Sample details Pages: 4 Words: 1316 Downloads: 2 Date added: 2019/08/16 Category Technology Essay Level High school Tags: Fracking Essay Did you like this example? Fracking has created a new world for everyone in the U.S. Production of crude oil has increased by far over the years and there is plenty of information about it. People say negative and positive comments about it, but its not likely most of them will be negative from the years of increased technology that has helped the world of fracking. Don’t waste time! Our writers will create an original "A Great Impact Of Fracking On USA" essay for you Create order Its known to be the number one leading cause of crude oil starting around the 1990s and will stay there as it has helped the world out anonymously in the past decades. The world now evolves and both realises on fracking as many different things takes oil like: vehicles, tools, roller coasters, as many things as you can think of oil is most likely being used for it. Fracking has started a newly improved economy in the U.S today. Fracking has been criticized for its multiple consequences that it has since it has started in the late 90s to early 2000s (Oil). It involves multiple steps like shooting a mixture of water and sand under high pressure under rock formations to break up rocks and dirt to get to the oil (Oil). Many people think of fracking as deadly, or unproper to our soil and to our land. As we have had multiple bad tragedies happen throughout the U.S because of fracking. Even though fracking can be bad, up to seventy five percent of the water, or the toxic water comes back up through the fracking hole and is stored in ponds or is taking away to treatment plants so the water can be turned back to normal (Reville). As fracking can be harmful and very dangerous to our soil and our water, it also has many goods then it does bad. Fracking has turned out to be a big boom as it produces more barrels of oil, it has about a sixty seven percent increase in production then regular drilling did (kilian). Fracking has allowed the U.S to produce way more oil then it ever has in decades of production (Oil). There are multiple doubts about fracking because of its harmful ways to the economy but, it has also improved way more then when it first started in the late 90s. As known, crude oil has came into the world as a new way of production for the United States.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Starting in the early 2000s, there were just 23,000 fracking wells pumping about if not more then 102,000 barrels of crude oil a day. Now there are over 300,000 fracking wells pumping over 4.3 million barrels a day (Oil). Now that is a big change in the United States. Technology and equipment are getting far more advanced today then they ever were. Crude oil is a unrefined petroleum that sits deep underground until it gets fracked, getting shot into the air from underground from the mass amount of pressure being used (Kilian).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Fracking has known to be the number one producer of crude oil all over the states for the past twenty years now. It is the new highly recommended way to produce and manufacture multiple gallons of oil. Innovations has made expensive fracking way more efficient in the past years. High oil prices before and after the Great Recession came into high amounts of investment dollars, fueling a big technological revolution (Oil). Crude oil prices have set a new high of $US 56.50 a barrel, after a report showed steep decline in petrol stocks (Shovelan). Oil prices can either go up in price, or it can go down in price. It has always been about the economy on what to raise or lower oil prices to. Crude oil, is a liquid in the earth with hydrocarbons, organic compounds, and usually very small amounts of metal that sits underneath the earth until us humans get to it. Hydrocarbons are usually the number one component in crude oil, but thats not always the conclusion. Sometimes it could vary from 50 percent all the way up to 90 percent depending on how the crude oil is extracted from the earth. The organic compounds in crude oil like: nitrogen, oxygen, and sulfur usually make up to 6-10 percent of the crude oil while metals like copper, vanadium, nickel, or iron, take up no more than 1 percent of the crude oil itself. Crude oil itself today can make our world completely different especially by us fracking it.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Fracking has many steps and is very difficult for us to do but as technology gets stranger and better, we find ourselves using time more wisely and having helpful hands such as technology get the job done quicker. The combination of fracking and horizontal drilling has had shale gas production has grow up close to almost 20 percent in the mid 2000s, by 2035 it should raise over 50 percent (Reville). Fracking typically consumes about 20,000 to 80,000 gallons of water per well, however, the new methods of fracking use up to over 4 million gallons of water per well (Reville). Even though fracking has been very deadly from the beginning, technology has well improved the ways and has made health hazards at an all time low (Barth).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Fracking is the new bete noire of conservationists, as they tend to grab or frack the last bit of crude oil from fossil fuels in inaccessible rocks in unsuitable places (Bikram). Fracking is likely to become the new dash for gas as the country is trying to find cheaper replacement of energy for our country (Bikram).   Crude oil and natural gases are the new part of the world as more and more   are found every day, it is used as an everyday key for cars, houses, machinery, etc. According to the IEA (International Energy Agency), the economic extraction of shale gases increased enormous amounts of natural gas from 125 years to 250 years (Reville).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   When fracking first started in the U.S, everyone thought it was going to be a huge bust as many didnt know how it worked or if it was even necessary since we had regular drilling already. It involved huge amounts of water and sand just to break the ground under high amounts of pressure so the oil could blow into the air and could be caught by huge dug up holes surrounded by big tarps or anything that wouldnt let it leak back into the ground. Fracking involves shooting a mixture of mostly water and sand under high pressure against a rock formation until it fractures. The sand fills the fracture, forcing crude oil out of the rock formation (Oil). Fracking has allowed the United States to increase its oil production faster than at any time in its history (Oil). The use of hydraulic fracturing in conjunction with horizontal drilling and micro-seismic imaging has made it possible to extract crude oil from rock formations characterized by low permeability (Kili an).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Fracking has become the new revolutionary key to surviving more years in this planet. Many people may not like the way it is done or how our water or sources are used, but it is helping our planet way more then it is hurting it. As some families think its toxic or harmful, so many more are making money off of it or just love it. It has became a new huge pice of our technology and it is only getting stronger and stronger everyday it is used. Fracking is all over the world including Saudi Arabia, Canada, the U.S, Iraq, and many more places. Once an idea, became into a mulit billion dollar operation throughout the entire world, so much anger and frustration as well as happiness and kindness. So much hardwork and effort put into something that could help throughout our entire country that could either put this world into debt, or it coudve made it worth billions. Fracking has helped the entire U.S, and has created new technology for ua to find out about.

The Meaning of s.t. or Subject To in Economics

In economics, the letters s.t. are used as an abbreviation for the phrases subject to or such that in an equation. The letters s.t. proceed important constraints that the functions must follow. The letters s.t. are generally involved in stating relationships between economic functions using the mathematical functions themselves rather than articulating the same in prose. For example, one a common usage of s.t. in economics may appear  as follows: maxx f(x) s.t. g(x)0 The above expression, when stated in or translated into words, would read: The value of f(x) that is greatest among all those for which the argument x satisfies the constraint that g(x)0. In this example, f() and g() are fixed, possibly known, real-valued functions of x. The Relevance of s.t. in Economics The relevance of the use of the letters s.t. to mean subject to or such that in the study of economics stems from the importance of mathematics and mathematical equations. Economists are generally interested in discovering and examining different types of economic relationships and these relationships can be expressed through functions and mathematical equations. An economic function attempts to define observed relationships in mathematical terms. The function, then, is the mathematical description of the economic relationship in question and the equation is one way of looking at the relationship between concepts, which become the variables of the equation. The variables represent the concepts or items in a relationship that can be quantified, or represented by a number. For instance, two common variables in economic equations are  p  and  q, which generally refer to the price variable and quantity variable respectively. Economic functions  try to explain or describe one of the variables in terms of the other, thus describing one aspect of their relationship to one another. By describing these relationships through mathematics, they become quantifiable and, perhaps most importantly, testable. Though at times, economists prefer to use words to describe economic relationships or behaviors, mathematics has provided the basis for advanced economic theory and even the computer modeling that some modern economists now rely upon in their research. So the  abbreviation s.t. simply provides short-hand for the writing of these equations in place of the written or spoken word to describe the mathematical relationships.

Emily Brontes Writing Technique in Wuthering Heights

A very complex element of Emily Bronte s writing technique is the narrative style she uses when alternating between the two characters of Nelly Dean and Lockwood. Wuthering Heights is a story told through eye witness accounts, first through Lockwood, followed by Nelly. Lockwood s responsibility is shaping the framework of the novel wheras Nelly provides the intricate recount of the personal lives of all the characters having been present first hand. Although, each character does have a different emotion and style. Having lived through all the action and conflict between the Linton s and Edgar s, and being personally invovled, it can be argued Nelly s narrative is more dramtised. She has been immersed in the intimate affairs of†¦show more content†¦As in Victorian England at the time, class status was crucial in decisions made by citizens just as it greatly influenced the characters motivations in Wuthering Heights. This seems to be a very common trait of 19th century women as this is paralleled in the novel Pride and Prejudice by Jane Austen. For example, just as Charlotte married Mr. Collins for security so too Catherine’s decision to marry Edgar was based on being, â€Å"the greatest woman of the neighbourhood.† Her decision was made purely for practical reasons. The Earnshaw’s status is on more shakier grounds than that of the Linton’s, so she marries for security and social advancement. She feels it would degrade her to marry Heathcliff despite her passionate love for him. This is also seen in the romance between Mr. Darcy and Elizabeth, however the sexes are reversed. Class is also reflected through the different properties of Wuthering Heights and Thruscross Grange. They both depict entirely different environments. The Grange is proper, domestic, and cultured whereas the Heights charateristics portray a hostile environment through their lesser status. This is seen clearly when Catherine is injured and must stay with the Linton s. There she no longer has to labour, receives manners, and becomes a lady. This marks the division of Heathcliff and Catherine s relationship and it dissolves from here as she sees herself unfit for a dirty, unmannered young boy such as Heathcliff. This setsShow MoreRelatedThe Depth of Emily Brontes Wuthering Heights884 Words   |  4 PagesWuthering Heights was written by Emily Bronte’. It would be the least to say her imagination was quite impressive. Through imagination as a child, Bronte’ and her sisters would write children stories, which inspired some popularly known novels. Wuthering Heights c ontains crossing genres, changing settings, multiple narrators, and unreliable narrators. George R. R. Martin wrote the book Game of Thrones, which is one of the modern day novels that contain several of Emily Bronte’s writing techniquesRead MoreThe Writing Style Of Emily Brontes Wuthering Heights741 Words   |  3 PagesWuthering Heights is a novel that has been held in high regard due to the author, Emily Brontes incredibly skill and precision. Notably, the development, or lack thereof, of her intricately detailed characters holds readers captivated from page one. Utilizing her experience as an poet, Bronte does a beautiful job of depicting each emotion of her subjects using her lengthy, almost lyrical writing technique. Along with her writing style, the depth to her characters adds yet another level to this bookRead MoreWuthering Heights by Emily Brontà « : A Perfect Misanthropist’s Heaven1585 Words   |  6 Pagessinister, and above all, hopeless. This essentia l element of gothic, with the inclusion of the supernatural, takes the main stage in Emily Brontà «Ã¢â‚¬â„¢s Wuthering Heights. This story of romance, mystery, and violence is not only the epitome of the gothic novel, but also a social commentary that rings true for the human race in its entirety. In a sense, Wuthering Heights is a true story, not because the characters and events are factual, but because Brontà « writes the story in a way that the truth is leftRead MoreWuthering Heights ch 1-3 analysis1105 Words   |  5 Pages In Wuthering Heights by Emily Bronte, what first appears to be an overabundance of descriptions about a mansion in nineteenth century England easily turns into a myriad of sentiment, hatred, and love among the protagonists. The work can be classified as an unprecedented satire, using indirect actions of its characters to convey a forthright message regarding human misdeeds. The first few pages of the book presents two main characters, Mr. Heathcliff and M r. Lockwood, where both serve an importantRead MoreRomeo and Juliet vs Wuthering Heights Essay example2305 Words   |  10 PagesHow is love portrayed in â€Å"Romeo and Juliet† and â€Å"Wuthering Heights† and how do settings affect and reflect the characters? William Shakespeare’s â€Å"Romeo and Juliet† and Emily Brontà «Ã¢â‚¬â„¢s â€Å"Wuthering Heights† are widely considered to be two of the most influential and popular romances in English literature. The way setting is used to reflect the mood of the scene, using variations of light and dark as well as weather and nature, is very stimulating to the imaginations of the audience. This essay willRead MoreLockwood and Nelly as the Obvious Narrators in Wuthering Heights2538 Words   |  11 PagesLockwood and Nelly as the Obvious Narrators in Wuthering Heights Although Lockwood and Nelly serve as the obvious narrators, others are interspersed throughout the novel-Heathcliff, Isabella, Cathy, even Zillah-who narrate a chapter or two, providing insight into both character and plot development. Catherine does notRead MoreNarrative Technique of Wuthering Heights1778 Words   |  8 PagesAssignment On Narrative Technique of Wuthering Heights A very complex element of Emily Brontes writing technique is the narrative style she uses when alternating between the two characters of Nelly Dean and Lockwood.    Wuthering Heights is a story told through eye witness accounts, first through Lockwood, followed by Nelly. Lockwoods responsibility is shaping the framework of the novel whereas Nelly provides the intricate recount of the personal lives of all the characters having beenRead MoreThe Brontà « Family1804 Words   |  7 Pageswriters, originating from the father Patrick Brontà «. Patrick strived for his children to be the best writers they could be and hoped they would make a career of writing poems, plays, novels and many others types of literature. Patrick and his wife Maria had six children, five girls and one boy. These five girls took a greater liking to writing literature over their brother, Branwell Brontà «. Since the Brontà « sisters were from this well-known line of Brontà « writers, their beautifully wr itten literatureRead MoreStructure and Narrative Technique in Wurthering Heights and Return of the Native1154 Words   |  5 PagesAlthough it was to be this novel which eventually underwent serious revision, `Wuthering Heights would have ultimately appeared as more baffling to Victorian readership. Here most of the action has passed before the novel begins, which causes a string of narrators to be used for various effect. We are rarely given differing viewpoints on the same event, and, combined with the almost anti-chronological nature of `Wuthering Heights, the story is often seen as difficult to interpret. The fact that BronteRead MoreHow does Emily Bronte use Gothic elements to enhance the novel ‘Wuthering Heights’? Discuss how Daphne Du Maurier’s ‘Jamaica Inn’ illuminates this.2086 Words   |  9 Pagesï » ¿How does Emily Bronte use Gothic elements to enhance the novel ‘Wuthering Heights’? Discuss how Daphne Du Maurier’s à ¢â‚¬ËœJamaica Inn’ illuminates this. In the Victorian era we saw the revival of gothic literature; it fictionalised contemporary fears such as ethical degeneration, unmediated spiritual beliefs against a stern religious faith and also questioned the social structure of the time. Although written almost 100 years apart both Wuthering Heights and Jamaica Inn share many themes and components

Financial Statement Analysis - Next Plc Vs. Debenhams Plc

Question: Analyse the financial performance of the two companies based on your calculations, identifying and discussing the purposes of calculating those ratios and the weaknesses of ratios analysis? Answer: Introduction Accounting is a method of recording transactions which are financial in nature sorting, summarizing and representing those transactions and prepare a report. It also gives important information to the management which needs to be considered while taking the decision. On the hand financial statement is the statement which is prepare to know the current financial condition of the company and it helps to forecast future plans and policies. Several tools are used for analyzing financial data like cash flow statement, profit and loss account, Balance sheet, Ratio analysis etc. the information generated from these statements help in doing the SWOT analysis of the company and the internal performance can be analyzed. In this research study two companies Next Plc and Debenhams PLC are taken into consideration and an analysis has been made on the basis of different financial ratios. Company overview Next plc is the oldest company in the group of plc and it was started its business in the year 1982. From the introduction of the company they presented their own collections of women wears and different accessories. This brand supplies its home ware and official clothing to the London Olympic and Paralympic games in 2012. They provide the outfit in the opening and closing ceremonies. Recently the company is proving services to almost 4 million consumers and most of their business is done through online (Anon, 2015). Debenhams Company was established in year 1813 when William Debenham invested in the firm created by William Clark. This is one of the international multi brand store. This company operates almost 240 stores across 27 countries in the world. They have to compete in the retail sectors with some of its strong competitors like Tesco, Sainsburys, Wal-Mart etc. They provide an exclusive collection of their own brand to worldwide customers (Anon, 2015). Analysis of financial performance A comparative analysis- Next PLC Debenhams The performance analysis of any firm can be done through the help of different analytical tools as already stated. Ratio analysis is the most commonly used tool among all. So in this study for analyzing the performance ratios are used as decision making parameters (Campilho and Kamel, 2012). Profitability ratios The profitability can be measured by the use of profitability ratios. The word profitability implies the capacity of a company to generate positive return for the shareholders which can be distributed as dividend and some portion can be retained for future expansion purpose. It is the ultimate result of the management decisions and policies. For a companys survival and expansion long term profitability is necessary. The profitability can be indicated by many ratios like Net Profit ratio, Gross Profit Ratio, operating profit ratio etc (Drury, 2012) ; (Collings, 2015). Gross profit ratio is the ratio which is calculated by taking net sales revenue into consideration. It reveals the percentage of gross profit achieved by a company on its net sales. The profit generated from the direct trading activity is known as the Gross profit of the company. It is the primary measurement of the profitability as there are some other factors which may have some influence on the profit. Higher gross profit ratio leads to high profitability. From the financials of both the companies it is found that the ratio of gross profit in next plc is increasing trend and 33.2% in year 2014, it represents a very good percentage on the revenue of the company. On the other hand it is very low in case of Debenhams as it is only 12% in 2014 and the most important point is that it is continuously decreasing. The main reason is may be due to the excessive cost of sales with respect to revenue earned (Robinson, 2012).. Operating profit of a company indicates the profit which is derived from the gross profit after deducting the operating expenses for the year. This approach is suitable than the gross profit approach as the financials are more accurate. In Next plc this ratio is satisfactory and increased in 2013 but in 2014 it is reduced by some fraction. Though the fraction amount is not too high but the company has to make an investigation on this for getting a better result. Debenhams has too low operating profit percentage. The main reason is lower gross profit and operational inefficiency. The most commonly used ratio for measuring the profitability is the net profit ratio. Net profit is the profit which is available after meeting all the direct and indirect expenses. A part of the net profit is distributed as dividend to the shareholders. Debenhams Company has a deteriorating net profit ratio. It is only 3% in the financial year 2014 and the situation is very unsatisfactory. The next plc company is in good state as they have almost 14% net profit for the year 2014. The way their net profit is increasing it shows that they are in the growing stage. Liquidity ratios Liquidity ratio indicates the liquidity position of a firm. Liquidity means the ability to pay cash and cash equivalents when it is required. Liquidity is necessary for smooth running of a business. Poor liquidity position hampers the credit policy of the firm as they may not be able to pay their creditors due in time. On the other side the firm may able to capture new market opportunities if its liquidity position is high. Current ratio and quick ratio are the two important ratios measures the liquidity position. Current ratio is the ratio between the current assets and current liabilities. Both current assets and liabilities are the main factors of working capital, so it is known as the working capital ratio. The company will be better position if the ratio is high. Ideal form of this ratio is 2:1 i.e. if a firm has rupee 1 as current liability then it should have the current assets of rupees 2. In next plc the current asset ratio is more than 1 but not as much as it should be. It is also in the increasing trend from which it may be predicted that very soon they may reach to the ideal form. In case of current ratio also the Debenham Company produces a negative image as the current ratio fall below 1. It means the company has more current liabilities to pay than its available current assets (Collis, Holt and Hussey, 2012). Quick ratio as the name indicates is the proportion between the quick assets and quick liabilities. Items which are not easily converted into liquid cash are deducted from the current assets and liabilities in order to get quick assets and quick liabilities. Inventories and prepaid expenses are deducted from the current assets and bank overdraft is deducted from the current liability as these items are not very liquid. Next plc has moderate quick ratio which is also more than 1. In Debenham the quick ratio is too low almost 0.22. This clearly indicates that the company is suffering by liquidity crunch (Alan Russell, R. Langemeier and C. Briggeman, 2013. Efficiency ratios Efficiency is the factor which is measured when the actual performance is more than the standard. For this it is necessary to set some standard which should be treated as performance indicator. Some ratios measuring the efficiency are interest coverage, receivable turnover, inventory turnover etc. Receivable collection period is the time lag which is allowed to the debtors for paying off their dues. It can be calculated by the receivable collection ratio with the total number of days/ months in a year. If the ratio is high then it indicates that the company is able to collect its due on time and it implies the frequency of the collection. Here in Next plc company the receivable collection ratio is 4 which means amount are collected from the debtors 4 times in a year with a time interval of 78 days in 2014. If we concentrate on this ratio for the past three years then we find that the company loosens its credit policy as the collection interval is increased from 73 days in 2013 to 78 days. In Debenham from the debtors are 11 days it means very frequently they have collected their dues so that they can cope up with the liquidity problem they are facing. Asset turnover ratio measures the utilization of the assets in the firms operation for generating the sales revenue. If the management is efficient enough to handle its operation with the help of its available assets then this ratio will be high. Both next plc and Debenham have more than 1 asset turnover ratio. But in case of Next plc it is getting reduced subsequently whereas in Debenham it is in a stable position (Foroughi, 2012).. Inventory represents the raw materials consumed for a particular year and the left over portion. It is an important element of current asset. In most of the business a large amount is blocked in the inventory so the inventory should be managed properly. Like other turnover ratios it also measured the frequency of inventory cleared during a particular period. While we are taking this ratio as performance indicator we found that both companies have a moderate inventory policy and there is less chance of overstocking or under stocking of inventories. Opposite of the receivable collection period is the payable collection period. it is the time lag within which a firm can pay its due to suppliers. If the time allowed by the supplier is high then it has both positive and negative impact on the company. It is positive because the company is not required to pay the amount at a time, but negative because it creates financial burden on the company and if the company is not financially viable then it may hampers the performance. The payable collection period of Debenham is mentionable here as they paid their dues with a time interval of 95 days. The company collects from the debtors within 11 days of sales but make payment to the creditors after 95 days which creates a possibility of enhancing the liquidity position as more liquid cash are now available to them. Gearing ratios deal about the capital structure of company. For operating a business efficiently long term capital is needed which is collected from different sets of investors. It involves some fixed charges also which the firm has to pay in return of the debt. Gearing ratio shows the ability of maintaining the cost of capital of the company. Financial gearing ratio which is also recognized as debt equity ratio is the proportion of debt capital on owned capital. For maintaining a high debt capital the company also has to incur high fixed obligation. 1:1 is considered as the benchmark for this ratio. Financial gearing ratio is very high in case of next plc and it is enhanced in 2014 compared to 2012 shows that they are more dependent on the debt capital and they may want to take the benefit of trading on equity. But in case of Debenham though it was more than one in 2012 but it reduces as they become more dependent on equity capital. The ratio between total equity and total assets is nothing but the equity gearing ratio. For acquiring the assets of the business a part of the owner capital should be used up. In this ratio this measurement is made. The inefficient performance is followed by a low equity gearing but when it is high then it can be said that the firm is performing well (S and Suresh Kumar, 2013). The financial stability can be calculated through the interest coverage ratio. It is the amount of the net profit earned by a company to cover its fixed interest obligation. If the interest coverage is high then it gives assurance to the investors and they will be satisfied by knowing the fact that the company can pay off their interest in time. By the ratio analysis of both the companies it is visible that next plc has a better position in paying off their interest than the Debenhams plc. The later companys ratio is falling from 14 to 9, so they are not in a position to deal with the debt capital. It will be too risky for them. Weakness of ratio analysis 1. Financial ratios are clues. So it cannot be considered as the single most factors for making any conclusion (Seal, Garrison and Noreen, 2012).. 2. Ratios are prepared by individual professionals. So can never be free from biased. 3. The data used for ratios are historical data and with the help of the ratios sometimes we predict the future, but it is not always true that the past and present will be same. 4. Comparison of the ratios will only be meaningful if uniformity is maintained in the accounting methods. 5. Inflation has an effect on the ratio which may not indicate actual figures. For example if the rate of inflation is 100 percent then the predicted amount of sales will be doubled from the previous year which may not an exact figure. 6. The interpretation of the ratio is quite complex task only by watching the results. For example the good current ratio is indicated as 2:1, but it may be the fact that the company sold its inventories in order to increase the csh balance for the current year. 7. Ratios are totally depends upon the strategies of different firms. If a comparison is made between two firms who are operating different lines of activity then the comparison does not give a satisfactory result. Recommendations From the above calculations following are the recommendations 1. The Debensham plc should concentrate on increasing of its revenue because they have to incur a huge amount of direct and indirect cost but their revenue is not up to the mark compared with this (Karelskaya and Zuga, 2012); (Kieso, Weygandt and Warfield, 2012). 2. All the ratios of Debensham indicate unsatisfactory conditions except the debtors and creditors collection period so the company should undergo by a proper investigation in order to find out their deficiencies. 3. The overall financial performance though well in case of Next plc but their equity gearing ratio is too low. So they should try to find out new investment opportunities which will enhance their return as well as increase the asset base (Kusano, 2012).. 4. The two companies are reputed companies in this sector but they need to gain the competitive advantage by their efficient performance. Especially Debenham company should try to utilize its core competencies and inner strength in order to maintain their position in the competitive market. Conclusion From the different accounting data ratios are calculated and it establishes a logical relationship among them (Goodhart, 2013) : (Jury, 2012). The conclusion can be made as- 1. Debenham Company has a good receivable and payable management policy. 2. The overall condition of the Debenham is deteriorating as all the ratios are below the standard. 3. The quick ratio of both companies are very low because they have blocked a large amount in inventories they have bank overdraft balances which is also a financial burden. 4. The liquidity, solvency and profitability position of the Next Plc is better than the other one. So from the total discussion made it can be concluded that Next plc is a consistent performer in the market but the Debenham is gradually losing their position, So they need to focus more on their activities. Lastly it should be remembered that ratio is one of the tools of performance analysis but it is not the only tool, so the other factors should also be considered before giving any final decision (Llewelyn, 2012); (Marilena and Alice, 2012).. References Alan Russell, L., R. Langemeier, M. and C. Briggeman, B. (2013). The impact of liquidity and solvency on cost efficiency.AgriculturalFINANCEReview, 73(3), pp.413-425. Campilho, A. and Kamel, M. (2012).Image analysis and recognition. Berlin: Springer. Collings, S. (2015).Interpretation and Application of UK GAAP. Hoboken: Wiley. Collis, J., Holt, A. and Hussey, R. (2012).Business accounting. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Drury, C. (2012).Management and cost accounting. Andover: Cengage Learning. Foroughi, K. (2012). Market-consistent valuations and Solvency II: Implications of the recent financial crisis.Br. Actuar. J., 17(01), pp.18-65. Goodhart, C. (2013). Ratio controls need reconsideration.Journal of Financial Stability, 9(3), pp.445-450. Jury, T. (2012).Cash Flow Analysis and Forecasting. Hoboken: Wiley. Karelskaya, S. and Zuga, E. (2012). BALANCE-SHEET THEORY OF A.P. ROUDANOVSKY.ecoman, 17(1). Kieso, D., Weygandt, J. and Warfield, T. (2012).Intermediate accounting. Hoboken, NJ: Wiley. Kusano, M. (2012). Does the Balance Sheet Approach Improve the Usefulness of Accounting Information?.The Japanese Accounting Review, 2(2012), pp.139-152. Llewelyn, H. (2012). Likelihood ratios are not good for differential diagnosis.BMJ, 344(may28 1), pp.e3660-e3660. Marilena, Z. and Alice, T. (2012). The Profit and Loss AccountMajor Tool for the Analysis of the Company's Performance.Procedia - Social and Behavioral Sciences, 62, pp.382-387. Mook, L. (2013).Accounting for social value. Toronto, ON: University of Toronto Press. Peterson Drake, P. and Fabozzi, F. (2012).Analysis of financial statements. Hoboken, N.J.: Wiley. Robinson, T. (2012).International financial statement analysis workbook. Hoboken, NJ: Wiley. S, M. and Suresh Kumar, S. (2013).Proceedings of the fourth International Conference on Signal and Image Processing 2012 (ICSIP 2012). New Delhi: Springer. Seal, W., Garrison, R. and Noreen, E. (2012).Management accounting. London: McGraw-Hill Higher Education. Anon, (2015). [online] Available at: https://www.nextplc.co.uk/~/media/Files/N/Next-PLC/pdfs/.../2013/ar2013.pdf [Accessed 15 Jul. 2015]. Anon, (2015). [online] Available at: https://media.corporate-ir.net/.../agm2014/annual_report_and_accounts.pdf [Accessed 15 Jul. 2015].