Appendix B Profitability Analysis Solutions to Questions B-1 Absolute profitability measures the impact on overall profits of adding or dropping a particular segment‚ such as a product or customer‚ without making any other changes. B-2 Relative profitability involves ranking segments‚ each of which may be absolutely profitable‚ for the purpose of making trade-offs among the segments. Such trade-offs are necessary when a constraint exists. Otherwise‚ they are not necessary. B-3 Every business
Premium Costs Opportunity cost Profit
The major profitability ratios are: 1.1.1.1 RETURN ON CAPITAL: Describes the earning capacity of the enterprise and it is measured by the following ratio: Profit before interest and taxation Average operating Assets The Return On Capital ratio measures how well the average operating assets (assets such as debtors‚ cash‚ fixed assets‚ stock) are generating the company s income‚ and is indicative of the management techniques applied by the company to utilise its assets
Premium Financial ratios Generally Accepted Accounting Principles Inventory
Journal of Finance and Investment Analysis‚ vol.1‚ no.2‚ 2012‚ 61-81 ISSN: 2241-0988 (print version)‚ 2241-0996 (online) International Scientific Press‚ 2012 Topic: capital structure determinants of quoted firms in Nigeria and lessons for corporate financing decisions Michael Nwidobie Barine1 Abstract Financial arrangements determine how and the amount of financing that can be obtained from fund providers. An optimal allocation between equity and debt is determined by the trade-off between
Premium Corporate finance Finance Tax
The health of ATSI people is impacted on by the sociocultural‚ socioeconomic and environmental determinants that relate to them. Sociocultural factors; ATSI cultures have a tendency to have less access to media exposure‚ which means they receive less health promotion. Without this vital information it can become difficult to change past habits‚ continuing the increase of health issues. ATSI families also may not have settled well into the non-indigenous lifestyle‚ often resulting in alcohol and
Premium Drug addiction Medicine Addiction
Ethiopia is located on the eastern horn of Africa bordering Sudan‚ and Kenya. According to their Gross National Income (GNI)‚ Ethiopia is ranked the tenth poorest third world country. Ethiopia’s major cities are comprised of Addis Ababa the capital‚ Dire Dawa‚ Harar‚ and Dessie. Ethiopia is the oldest independent country in Africa and one of the oldest in the world. Unlike most countries in African’s history‚ Ethiopia has never been colonized‚ except for during the Italian occupation in 1936-1941
Premium
Airline Profitability in NIGERA In a 2008 interview with VIA Magazine‚ Richard Branson‚ founder of Virgin Airways‚ said‚ “I’ve always said the easiest way to become a millionaire is to start out a billionaire then go into the airline business.” The airline business has been somewhat of a mixed bag; that is until 2010 when airlines were at their most profitable. According to the Wall Street Journal‚ since 1978 airlines have experienced lagging profits‚ but in 2010 they posted half year profits
Premium International Civil Aviation Organization Profit Profit margin
1‚26 ROE 36‚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
Premium Profit Rate of return Investment
Introduction Two Environmental Problems in Ethiopia would be soil degradation and overpopulation. This presentation will cover the main questions of why this is happening and answers that could help and control Ethiopia ’s land and overpopulation problems. Strategies will be assessed as to the help Ethiopia needs from inside and outside sources. Other regions in the world will be identified that have progressed from these same problems‚ and what impacts these implementations have had on their success
Premium Population ecology Population Overpopulation
’A prophet of change who could not achieve his vision’ to what extent do you agree with this statement of Tewodras II of Ethiopia Theodore II (Tewodros) had great visions and aims for Ethiopia but the ways in which he tried to achieve these aims and restore unification within Ethiopia was somewhat a failure and caused him to be unsuccessful in the eyes of some historians‚ hence the statement ‘A prophet of change who could not achieve his vision’. Theodore was born in 1818 by the name of ‘Kasa’
Premium Ethiopia
Introduction The Federal Democratic Republic of Ethiopia is located on a massive rough mountainous highland in Eastern Africa which covers 1‚127‚127 square miles in area (Milkias‚ 2011). Ethiopia is home to about 82 million people. Ethiopia is one of the poorest of the least developed countries which 39% of the population live below the poverty line (Woldemicael & Tenkorang‚ 2010; Bedford‚ Gandhi‚ Admassu‚ & Girma‚ 2013). United Nations [UN] (2012) state that Ethiopia is one of the 189 countries that involved
Premium Poverty Africa United Nations