Ratio analysis provides an indication of a company’s liquidity‚ gearing and solvency. But ratios do not provide answers; they are merely a guide for management and others to the areas of a company’s weaknesses and strengths (Palat 1999). However‚ ratio analysis is difficult and there are many limitations. This section will identify and discuss the inadequacies of accounting ratios as tools of financial analysis. ACCOUNTING POLICIES. It is difficult to use ratios to compare companies‚ because they
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Setco Automotive is not the type of company that gives out incentives to their employees. The only items is a twenty-five dollar gift card on Thanksgiving and Christmas it is all about work. However‚ this company the only worry is about was making money no matter what it takes. These new people that have taken new ownership of Haldex Brake System. Furthermore‚ Setco Automotive management team only care about the company interest and not the employees. We never receive thank you or job well done from
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The automation of the manufacturing process for MK20 at ITT created a debate that can be summarized in the following sentence: to what level automation is good in different plants. The cost/flexibility tradeoff is always present when discussing automation. Basically‚ the implication of automation for cost can be viewed from different perspectives. Automation is utilizing control systems and information technology to reduce human work during production especially for tasks that require physical interventions
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FINANCIAL RATIO ANALYSIS: PAKISTAN STATE OIL Introduction: Financial ratios for PSO for last 3 years are provided below. The company represents current market share of 78.2% in the black oil market and 54.3% share in the white oil market with net sales of Rs1.02 billion in 2012‚ Rs820 million billion in 2011 and Rs742 million in 2010. Ratio Analysis: PAKISTAN STATE OIL | |2012 |2011 |2010
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Impact of Rising Oil Prices in Automotive Industry The rise in the oil prices plays a major role in the automotive industry. “The world consumes over 82 million barrels of oil per day (BPD)‚ with the united states taking roughly 20 million BPD” (McFarlane). Oil provides 97 percent of the transportation fuels that helps to run the cars‚ trucks and other vehicles in the nation’s highway (Heinberg). Thus‚ when the price of the oil rises‚ it clearly concerns the auto industry because the companies are competing
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Automotive Industry Outlook: Assessing Opportunities in a Multi-Speed World Mike Wall Director‚ Automotive Analysis IHS May 2013 IHS : The Source for Critical Information • In business since 1959‚ IHS is a leading global source of critical information and • • • • insight for customers in a broad range of industries Data and deep expertise from industry-specific professionals enables innovative and successful decision-making Diverse client base‚ from governments and large multi-national
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Ratio analysis Debt ratio Debt ratio (2006-2007) = Total liabilities / Total assets = 10‚170/12‚064 = 0.84 Debt ratio (2007-2008) = 9‚210/11‚769 = Debt ratio (2008-2009) = 10‚003/11‚229 = Debt ratio (2009-2010) = 11‚043/12‚537 = Current ratio Current ratio (2006-2007) = Current assets / Current liabilities = 3‚424/4‚790 = 0.71 Current ratio (2007-2008) = 2‚164/4‚498 = Current ratio (2008-2009) = 1‚326/5‚389 = Current ratio (2009-2010) = 2‚697/6‚085 = Return on sales (ROS) Return on Sales
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Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets) Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity Investment Ratios Earnings per Share
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PROFITABILITY RATIOS RETURN ON INVESTMENT (ROI): The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence‚ the return on capital employed is used as a measure of success of a business in realizing this objective. Return on Investment establishes the relationship between the profit and the capital employed. It indicates the percentage of return on capital employed in the business and it can be used to show the overall profitability
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Management 1 2 3 ID PGEXP/019/2013 Name Bharat Bhushan PGEXP/057/2013 PGEXP/063/2013 Prasanta Kumar Pattnaik Rajesh Dhiman Case Submission Date: 10-Jan-2015 Post-Graduate Executive Programme in Management PGEXP (2013-15 Batch) ITT Automotive – Industry Detail PRODUCT DETAIL : Anti-Lock Brake system (ABS) CHILD PARTS: Electric Motor‚ Hydraulic Fluid Pump‚ Valve Block‚ Microprocessor Controller‚ Wire Harness and Wheel Sensor assemblies. ABS Origin & Design Refinement History :
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