GROUP 1 REPORT FINANCIAL RATIOS Financial ratios are useful indicators of a firm’s performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm’s financials to those of other firms. In some cases‚ ratio analysis can predict future bankruptcy. SOURCES OF DATA FOR FINANCIAL RATIOS Balance Sheet Income Statement Statement of Cash Flows Statement of Retained
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Profitability Ratios Profitability Ratios attempt to measure the firm’s success in generating income. These ratios reflect the combined effects of the firm’s asset and debt management. Profit Margin The Profit Margin indicates the dollars in income that the firm earns on each dollar of sales. This ratio is calculated by dividing Net Income by Sales. Return on Assets (ROA) and Return on Equity (ROE) The Return on Assets Ratio indicates the dollars in income earned by the firm on its assets
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Ratio analysis 1. Liquidity ratio The liquidity ratios measure the company’s ability to meet its short-term debt obligations (Intermediate accounting- Kieso‚ D.E.‚ J.J. Weygandt and T.D. Warfield). These ratios include current ratios‚ quick ratios‚ and cash ratio. Current ratio: the current ratio of GM has increased from 1.29 in 2012 to 1.30 in 2013. With a higher ratio in 2013‚ it’s better for GM to meet its short-term obligation. Quick ratio: the quick ratio of GM has improved from 0.79 in 2012
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Financing Change PRIVATE EQUITY DEMYSTIFIED An explanatory guide John Gilligan and Mike Wright Financing Change An initiative from the ICAEW Corporate Finance Faculty This is the first report to be published under Financing Change‚ the thought leadership programme of the ICAEW Corporate Finance Faculty. The faculty is the world’s largest network of professionals involved in corporate finance and counts accountants‚ lawyers‚ bankers‚ other practitioners and people in business among its members
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reported on the financial statements. 1) Return on Equity: One of the most important profitability ratios is return on equity (ROE). ROE is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested. The return on equity ratio is computed as follows: Return on Equity = | Net Income | | Average Shareholder’s Equity | Simply
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* Findings and Analysis: Liquidity Ratio 1. Current Ratio: A company’s current assets divided by its current liabilities is known as the Current Ratio. This ratio is regarded as a measure of short-term debt paying ability. It measures the capability to obsolete the current liability with comparing to current asset by how many times. The equation is- Current Ratio = Current AssetCurrent Liability * The general rule of thumb calls for a current ratio of at least 2:1. If it is greater than
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Profitability Ratios Profitability ratios measure two aspects of a corporation’s profits: (1) those elements of operations that contribute to profit and (2) the relationship of profit to total investment and investment by stockholders. The first group of profitability ratios [gross profit (or gross margin) percentage‚ operating margin percentage‚ and net profit margin percentage] expresses income statement elements as percentages of net sales. The second group of profitability ratios (return on assets
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------------------------------------------------- FOUNDATION STAGE TRAINING REPORT NAME : Ashutosh Mishra NAME OF THE DEPARTMENT : Housekeeping NAME OF THE AREA ALLOCATED : Public Area REPORT RECEIVED BY _________________________ (ExecutiveHousekeeper) ______________________ (Training Manager) INDEX Topic Page No. Introduction 3 Department Organisation 3 Work Flow
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Examination: Table of Content Page Title Page # Analysis and Discussion Location of Study Area Map Of Jamaica Location of Study Area Map of Study Area Portland The Aim of Study What Depositional Features are formed along the Swift River channel from Hope Road to Bloom Field Portland Jamaica? Methodology The primary data of this study was collected on a field
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the Golden Ratio The golden ration can occur anywhere. The golden proportion is the ratio of the shorter length to the longer length which equals the ratio of the longer length to the sum of both lengths. The golden ratio is a term used to describe proportioning in a piece. In a work of art or architecture‚ if one maintained a ratio of small elements to larger elements that was the same as the ratio of larger elements to the whole‚ the end result was pleasing to the eye. The ratio for length
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