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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Liquidity Ratios Current ratio FORMULA 2012 (31 DEC) 2013 (31 DEC) Current ratio = Current assets/ Current liabilities 137‚ 802‚ 520/43‚ 748‚ 011 = 3.15 times 140‚ 114‚ 822/ 47‚ 097‚ 947 = 2.98 times The current ratio is measured the ability to pay its liabilities in the short term. The higher current ratio‚ the company would be able paying its debt. The current ratio of Hup Seng Industries Berhad in 2012 is 3.15 times. Both current assets and current liabilities of Hup Seng Industries Berhad
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Year III ------------------------------------------------- Ratio Analysis Report ------------------------------------------------- Student: Kevin Galea 205891 (M) ------------------------------------------------- Lecturer: Dr. Emanuel Camilleri Introduction The purpose of the following report is to aid Build-It Ltd in planning the direction that the company may want to go over the next few years. The report entails a financial analysis which will give the directors an understanding of how
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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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6N215 Corporate Financial Reporting Professor Doug DeJong Carrefour Group Assignment Introduction Company Overview Carrefour was founded in 1959 in France. Marketing itself as a one-stop-shop providing a wide range of products at a low cost‚ it is now the second largest retailer in the world and the largest in Europe. In 2012‚ the company continued expanding their international footprint by adding an additional 283 retail points in France‚ Europe and Latin America. As of December 31
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2.0 FINANCIAL RATIOS 2 Liquidity Ratios Liquidity ratios measure a business ’ capacity to pay its debts as they come due. It also measures the cooperative’s ability to meet short-term obligations. Liquidity refers to the solvency of the firm’s overall financial position – the ease with which it can pay its bills. Because a common precursor to financial distress and bankruptcy is low or declining liquidity‚ these ratios can provide early signs of cash flow problems and impending
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Ratio Analysis Ratio analysis is basically used to understanding the financial health of a business entity. With the help of ratios we can easily calculate from current year performance of the companies and are then compared to previous years. Ratio analysis conducts a quantitative analysis of information in a company’s financial statements. These Ratios are most commonly used in banking sector can be divided into five main categories Liquidity Ratios Leverage Ratios Profitability Ratios Activity
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Understanding the Concepts Professor Ingrid P. Nelson Fin 100 Introduction to Finance December 1‚ 2012 1. Imagine you are a small business owner. Determine the financial ratios that are important to the business. Compare your ratios with those that are important to a manager of a larger corporation. As a business owner‚ financial understanding is something that has to be studied before you decide that you are going to open or even start a new business. Small businesses in general run the finance
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Case 21 South African Breweries Executive Summary South African Breweries (SAB) one of the biggest global producer of beer which is facing several problems such as: SAB has operated in many countries with instable currencies which makes company looking for other alternatives of sufficient capital. Whether is better to enter emerging markets or developed markets. SAB stays on intersection which leads to many local brands in one direction and one global brand in other direction
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Executive summary Ratios of ten companies are presented in this study. The companies are all headquartered in the United States and the financial statements are the most recent annual financials for the respective fiscal years ending in 1999 or 2000. The companies are: 1. Developer of prepackaged software 2. On-line retailer 3. Warehouse club for food and general merchandise 4. Major passenger airline 5. International hotel chain 6. Temporary staffing agency 7. Supermarket grocery
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