RATIO ANALYSIS (ALL VALUES IN Rs. MILLION) 1. GROSS PROFIT MARGIN (%): GROSS PROFIT = NET SALES – COGS = TOTAL REVENUE – (Employee Benefit Expense + Operating and Other Expenses + Finance Costs) = 53107 – (22510+21598+1025) = 7974 GROSS PROFIT MARGIN = (NET SALES – COGS)/NET SALES = (7974/ 53107)*100 = 15.01497% 2. RETURN ON ASSET(RoA) RETURN ON ASSET = (PAT/TOTAL ASSET)*100 = (4606/63454)*100 = 7.258% This indicates that around 7.3% of all assets have been utilized
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better known as ratio analysis. Ratios are among the more widely used tools of financial analysis because they provide clues to and symptoms of underlying conditions.2 Ratios help measure a company’s liquidity‚ activity‚ profitability‚ leverage and coverage.1 These five measured sections show how ratio analysis is used in decision-making‚ how a firm can measure its financial situation and financial performance‚ and the strengths and weaknesses of the company. The term ratio analysis can be broken
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25‚ 2012 Re: Huffman Trucking Ratio Analysis Team B has completed a ratio analysis on Huffman Trucking. Our team has looked over financial statements to determine the liquidity‚ profitability‚ and solvency ratios of Huffman Trucking. These ratios provide detailed information to creditors‚ investors‚ and employees. Together‚ the ratios reveal data related to the performance and position of Huffman Trucking. What do the liquidity‚ profitability‚ and solvency ratios reveal about the company’s financial
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MANAGEMENT TOOLS LECTURER NAME William mwangi ABC analysis In materials management‚ the ABC analysis (or Selective Inventory Control) is an inventory categorization technique. ABC analysis divides an inventory into three categories- "A items" with very tight control and accurate records‚ "B items" with less tightly controlled and good records‚ and "C items" with the simplest controls possible and minimal records. The ABC analysis provides a mechanism for identifying items that will have
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I have started a forum asking the forum users about what they like and dislike about Subaru’s. From this I have deciphered the following advantages and disadvantages ADVANTAGES It is a fact that Subaru’s are one of the best balanced cars out on the car market today. This is because of three main things‚ the longitudinally mounted Subaru Boxer engine‚ the Subaru symmetrical all wheel drive system and the almost perfectly symmetrical drive train. All of these aspects help to make the car as balanced
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* Financial Analysis No company can remain in business if it cannot sustain and grow its profits and banks are no exemption. If Bank Alfalah wants to become a premier banking institution and to satisfy its customers‚ it itself needs to become a profitable organization‚ that not only has growth in profits‚ increase its assets but also provide its shareholders with the maximum return so that they are also satisfied. * Operational Result Profit Comparison for 2010 & 2011 Description |
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Ratio Analysis Ratio analysis is used to evaluate relationships among financial statement items. The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity‚ profitability‚ and solvency. Liquidity Ratios Liquidity ratios measure the ability of a company to repay its short‐term debts and meet unexpected cash needs. Current ratio The current
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the subject‚ the most appropriate studies have been reviewed.Dr. Promod Kumar published a book in 1991 “Analysis of financial statement of Indian Industries” The study covered the 17 private sector‚ 5 state owned public sector and 1 central public sector companies. He studied analysis of activities‚ assessment of profitability‚ return on capital investment‚ analysis of financial structure‚ analysis of fixed assets and working capital. In his research he revealed various problems of industries and suggested
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Natural resources are the building blocks on which modern society depends. Knowledge of their physical nature and origins‚ and the web they weave between all aspects of human society and the physical earth can lay the foundation for a sustainable society. We agree with the above statement because natural resources are important‚ as human beings would not exist without them. We use natural resources in everything we do. Therefore we should use our resources with minimal wastage and even ensure
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I tend to agree that young children can be negatively affected by too much time spent on the computer every day. This is partly because sitting in front of the screen for too long can be damaging to both the eyes and the physical posture of a young child‚ regardless of what they are using the computer for. However‚ the main concern is about the type of computer activities that attract children. These are often electronic games that tend to be very intense and rather violent. The player is usually
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