"Factors to consider when interpreting ratio analysis" Essays and Research Papers

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    The Golden Ratio

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    The Golden Ratio The golden ratio is a number used in mathematics‚ art‚ architecture‚ nature‚ and architecture. Also known as‚ the divine proportion‚ golden mean‚ or golden section it expresses the relationship that the sum of two quantities is to the larger quantity as is the larger is to the smaller. It is also a number often encountered when taking the ratios of differences in different geometric figures. Represented mathematically as approximately 1.618033989‚ and by the Greek letter Phi

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    4.1.1 Factor Analysis of the WTCS A principal component factor analysis was conducted on the 25 items with varimax rotation. Because the Kaiser-Meyer-Olkin (KMO) measure verified that the whole WTC scale was .832 (>.8 is applicable for factor analysis according to Kaiser)‚ it gave me the confidence that the sample size of the research was adequate for factor analysis. The scree plot for WTC scale showed the inflexions that the scale is not unidimensional. Consequently‚ I retained the five factors

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    Profitability Ratios

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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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    Ratio Worksheet

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    Ratio Worksheet 1. a. Split £10 into the ratio 2 : 3 c. Split 50 sweets into the ratio 9 : 1 e. Split 2.50m into the ratio 3 : 2 g. Divide 56kg into the ratio 2 : 5 : 1 i. Divide 75 birds into the ratio 8 : 5 : 2 k. Split 3kg 600g into the ratio 1 : 2 : 3 b. Split £48 into the ratio 3 : 5 d. Change 250ml into the ratio 7 : 3 f. Change £6.60 into the ratio 5 : 6 h. Split £100 into the ratio 5 : 4 : 1 j. Divide 1.20m in the ratio 2 : 3 : 4 l. Split 1 hr 20 mins into the ratio 1 : 4

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    Financial Ratios

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    The financial ratios are: Liquidity Ratio- The firms ability to satisfy the short term obligations. (Gitman‚ 2007) Activity ratio- That measure the speed with which various accounts are converted into sales or cash‚ inflows or outflows. (Gitman‚ 2007) Debt ratio- That measures the proportion of total assets financed by the firms creditors. (Gitman‚ 2007) Profitability ratio- measures enable the analyst to evaluate the firms profits with respect to a given level of sales a certain level of assets

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    Financial Ratios

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    1. Current Ratio- the current ratio is current assets divided by current liabilities. In the data from 2002 in Appendix D the current assets equal $104‚296.00 and the current liabilities equal $139‚017.00 the current ratio equals 0.75. 2. Long –term solvency ratio- the formula used for long term solvency is total assets divided by total liabilities. In the data provided the total assets equal $391‚270.00 and the total liabilities equal $310‚246.00 making the long-term solvency ratio equal 1.26

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    Question 2a: Discuss the importance of ratio analysis for inter-firm and intra-firm comparisons including circumstances responsible for its limitations .If any Answer: Ratio analysis implies the systematic use of ratios to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial position can be determined. With the help of ratio analysis conclusion can be drawn regarding several aspects such as financial health‚

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    SCIENCE DEPARTMENT OF MASS COMMUNICATION SUBJECT : BMC 318 WRITING FOR PRINT MEDIA LECTURER : SANGA‚ FRANK STUDENT NAME : SUKA‚ ROSENA SIMON REG.NO : .TU/DARco/BMC/010/115 QUESTION: What are the key points you have to consider when writing for magazine and newsletter. What are differences with newspapers. Submission date : 22nd December‚ 2012 According to Sarkar.N.(2008) Newsletter is defined as a small publication (as a leaflet or newspaper) containing news

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    Debt Ratio

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    evaluate how well it is performing‚ one of those tools is the debt ratio calculation. The debt ratio shows the proportion of assets financed with debt‚ liabilities. It is calculated by the companies total liabilities divided by its total assets and is used as a percentage. Total assets and total debts can be found on the balance sheet. “It can be used to evaluate a business’s ability to pay its debt” (Nobles p. 89). The debt ratio can be used to evaluate a business’s ability to pay it’s debts.

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    company’s financial leverage‚ calculated by dividing a company’s total liabilities by its stockholder’s equity. This ratio indicates how much debt a company is using to finance its assets relative to the amount of value represented in shareholders’ equity. Most company is taking on debts as to increase its value by using borrowed money to fund various projects. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. If a lot of debt is used to finance

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