Price/Earnings Ratio Model (P/E) The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular metric of stock analysis. A valuation ratio of a company’s current share price compared to its per-share earnings. For example‚ if a company is currently trading at $60 a share and earnings over the last 12 months were $2 per share‚ the P/E ratio for the stock would be 30 ($60/$2). The earnings multiplier can be computed as follows: P/E Ratio = Current Market
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Debt/Equity Ratio What Does Debt/Equity Ratio Mean? A measure of a company’s financial leverage calculated by dividing its total liabilities by its stockholders’ equity; it indicates what proportion of equity and debt the company is using to finance its assets. http://financial-dictionary.thefreedictionary.com/debt%2Fequity+ratio ’Debt/Equity Ratio’ A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings
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91% 34‚32% ROD 0‚32% 1‚06% In this report we are comparing two of the biggest clothing companies H&M and INDITEX by using profitability ratios for making a financial statement analysis. We will state opinions in regard to the previously analyzed figures and comment on them. The overall profitability (ROI) is 23‚01% in 2011 and 24‚18% in 2012. So the ROI is showing an increase in the period analysed because of the increasing PMR (from 18‚29% to 19‚55%)and ATOR decreases slightly (1‚26
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REPORT INDUS MOTOR COMPANY 11/19/2011 Analysis of Common size Income Statement Net sales In the years 2007 and 2008 there has been a slight increase in net sales which depicts that the demand of the vehicles has not surged in a significant manner. In contrast to this‚ the year 2009 has suffered a decrease in the total net sales . As compared to FY09‚ the net sales for FY10 rose by 37%. This was due to both‚ increase in manufacturing and increase in trading of the company.. The increase in
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hold strong opinion that male was the person who had all positions and power in hand while female had nothing. It leads to the urgent problem which affects the number of men and women because of this way of thought. It is the imbalance sex ratio of newborn. Sex ratio of newborn (SRN) is the rate between the number of boys being born in every one hundred girls (UNFPA‚ 2010). It happens in not only developing countries but also developed countries such as China‚ Korea‚ India‚ Singapore‚ United States and
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A. Debt Management Ratios (Leverage Ratios) The extent to which a firm uses debt financing‚ or financial leverage‚ has three important implications: 1. By raising funds through debt‚ stockholders can maintain control of a firm while limiting their investment 2. Creditors look to the equity‚ or owner-supplied funds‚ to provide a margin of safety‚ so the higher the proportion of the total capital that was provided by stockholders‚ the less the risk faced by creditors 3. If the firm earns more
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8 November 2007 (afternoon) INSTRUCTIONS TO CANDIDATES • Do not open this examination paper until instructed to do so. • Answer all the questions. • For each question‚ choose the answer you consider to be the best and indicate your choice on the answer sheet provided. 8807-6501 21 pages © IBO 2007 –2– 1. Which of the following contains only fundamental SI units? A. B. C. D. ampere volt mole kilogram newton second ampere metre N07/4/PHYSI/HPM/ENG/TZ0/XX+ second kelvin kilogram
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CHAPTER 9 Ratio Analysis Introduction The analysis of the financial statements and interpretations of financial results of a particular period of operations with the help of ’ratio’ is termed as "ratio analysis." Ratio analysis used to determine the financial soundness of a business concern. Alexander Wall designed a system of ratio analysis and presented it in useful form in the year 1909. Meaning and Definition The term ’ratio’ refers to the mathematical relationship between any two inter-related
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Name Module Name: Financial Analysis & Management (NOTE: Word count 3714 excluding Appendix and References) Contents 1. About HCL Technologies 4 2. Objectives of Study 6 2.1 Scope 6 3. Concept of Financial Statement & Ratio Analysis 7 3.1 Financial Statement 7 3.2 Ratio Analysis 7 3.3 Significance of Ratio Analysis in Financial Statement 8 3.4 Limitations of Ratio Analysis 9 4. Data Analysis 11 4.1 Liquidity Ratio 11 4.1.1 Current Ratio 12 4.1.2 Quick Ratio 13 4.1.3 Net Working
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Analysis of the Kellogg’s organisation and discussion of the modelling methods used Introduction Below is a financial report analysing whether the Kellogg’s company (K) is worthy of investment. To do this I will examine their historical data and financial information; then from these‚ make calculations and model the company’s situation (This information report was obtained from http://uk.finance.yahoo.com). After calculating the models I will be able to compare them with the actual stock
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