Profitability Ratio Analysis Profitability Ratio | 2008 | 2009 | 2010 | 2011 | 2012 | Gross profit | 51.15% | 48.80% | 50.45% | 49.01% | 48.13% | Net profit | 4.33% | 13.35% | 17.56% | 25.18% | 19.40% | Expenses ratio | 6.14% | 4.79% | 5.11% | 6.10% | 6.17% | ROA | 0.015 | 0.037 | 0.056 | 0.076 | 0.063 | ROE | 0.024 | 0.069 | 0.102 | 0.162 | 0.130 | ROCE | 0.035 | 0.048 | 0.069 | 0.086 | 0.075 | Table 3.1 Profitability Ratios (Year 2008 - 2012) From the calculation‚ the gross
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To: Shareholders of Hot Fashions From: 10/11/2013 HOT FASHIONS BUSINESS REPORT Return On Capital Employed= 53.18% Return on capital employed (ROCE) is the ratio of net operating profit of a company to its capital employed. It measures in percentage terms whatever the net profit is generated to overall value of the company in terms of capital employed. In the case of hot fashions‚ they have managed to generate a return on their capital
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the share price rose from $16.65 ( $22.19 ( a huge rise in the value of invested capital. ❖ Debt and Equity (Gearing) At Woolworths 2006 2007 Total Debt $9088.8 m $8901.4 m Total Equity $4257.6 m $5514.7 m Debt to Equity Ratio 2.13:1.0 1.61:1.0 Summary of gearing indicating financial stability of Woolworths o Relatively high gearing. But Woolworths is in a time of growth and tend to borrow to fund that growth. i.e. the increase from 756-766 supermarkets
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of the Accounting Term Like for Like Sales Sales Per Square Foot Profit Margin Return on Capital Employed Asset Turnover Stock Turnover Creditor Payment Period Quick Ratio Gearing Ratio Price Earnings Ratio Type Trading Performance Measures Profitability Ratios Efficiency & Effectiveness Ratios Liquidity Ratio Gearing Ratios Investors Ratios Like for Like Sales (LFL): When looking at accounts you are unable to gain a real perspective on gains and losses within a company. Especially if the
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Financial Strategy Analysis of Sainsbury plc.’s Financial StrategyWritten byJason Cates 0 2. © Jason Cates‚ 2012Reproduction for the following uses is authorised provided the source is acknowledged in-line with the Copyright‚ Designs and Patents Act 1988;Private and research study purposes‚ performance‚ copies or lending for educationalpurposes‚ criticism and news reporting‚ incidental inclusion and copies and lending bylibrarians. Further details of authorised use under the above Act is available
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Javed Siddiqui* M. Zillur Rahman** Abstract: Prior studies in capital structure have attempted at establishing relationships between profitability and level of gearing. This study attempts at presenting a comparison of capital structures between MNCs and local blue chip companies enlisted with the DSE. The study concludes that the level of gearing used in MNCs are significantly lower than the level of debt used by their sectoral local counterpart companies‚ although the MNCs have a higher tangibility
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how well the managers and the company have performed and how well they handled the demands of the economic downturn to reduce the shock on their financial performance. The ratios would be looked at in five broad areas: Profitability‚ Liquidity‚ Gearing‚ Working Capital management and Investors. PROFITABILITY “…Profitability relates profits to the investment made to achieve them.” R.H Parker (2007) it also provides an insight to the degree of success in achieving the purpose of the business
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Corporate Finance Essay Most corporate financing decisions in practice reduce to a choice between debt and equity. The finance manager wishing to fund a new project‚ but reluctant to cut dividends or to make a rights issue‚ which leads to the decision of borrowing options. The issue with regards to shareholder objectives being met by the management in making financing decisions has come to become a major issue of recent times. This relates to understanding the concept of the agency problem. It deals
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ordinary shareholders. This will help to reduce the company’s stress when they are facing financial problems. Beside‚ issue of ordinary share will help to reduce the gearing ratio. A gearing ratio means the proportion of a company’s capital that provided by debt relative to the capital that provided by equity. The examples for gearing are debenture and preference share which are all company’s long-term liabilities and they are carrying a right to a
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TABLE OF CONTENT INTRODUCTION 1 TESCO’S RATIO ANALYSIS 2 SUMMARY TESCO’S RATIO 13 COMPARATIVE ANALYSE – Tesco’s Vs Marks and Spencer’s________________ _______14 CRITICAL ANALYSIS OF TESCO PLC__________________________________________ 21 CONCLUSION ? BIBLIOGRAPHY ? APPENDIX 1 –TESCO’S PLC APPENDIX 2- MARKS AND SPENCER’S- CONSOLIDATED STATEMENTS I-Introduction This report will evaluate the financial performance of Tesco’s and comparing it to Marks and Spencer’s has the purpose
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