Ratio and Proportion • If 2 numbers are in ratio a: b then consider them as ax and bx (where x is the proportionality constant) and apply ax and bx in the given condition of the problem to proceed for answer • Ratio can be applied between 2 units if and only if the same physical quantity is compared • Length : length is correct • Length : density is wrong • Ratio can be made only after the units are compared in the same unit • If two lengths are 1 mile and 1 km respectively then ratio
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Financial Reporting II Review of Ratio Analysis Ratio analysis is a useful tool for analyzing financial statements. Calculating ratios will aid in understanding the company’s strategy and in understanding its strengths and weaknesses relative to other companies and over time. They can sometimes be useful in identifying earnings management and in understanding the effect of accounting choices on the firm’s reported profitability and growth. Finally‚ the ratios help in obtaining a better understanding
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FINANCIAL RATIOS Gross Profit to Sales (Gross Profit Ratio): profitability ratio that shows the relationship between gross profit and total net sales revenue. Gross margin/Net sales The gross margin is not an exact estimate of the company’s pricing strategy but it does give a good indication of financial health. Without an adequate gross margin‚ a company will be unable to pay its operating and other expenses and build for the future. In general‚ a company’s gross profit margin should be stable
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The article I chose is Solvency Ratio Analysis and Leveraging. This article tells about how solvency and leveraging are connected. It describes several ratios used to determine how a company is doing long-term. Company’s use debt and equity to start and keep their operations running. Owners or stockholders donate equity to build and maintain their company. Leverage is used to produce income and impacts a company’s long-term solvency. No matter what the economic situation is‚ a company needs to be
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The Golden Ratio The golden ratio is a unique number approximately equal to 1.6180339887498948482. The Greek letter Phi (Φ) is used to refer to this ratio. The exact value for the golden ratio is the following: ` A popular example of the application of the golden ratio is the Golden Rectangle. Interestingly enough‚ many artists and architects have proportioned their works to apply the golden ratio in the form of the golden rectangle. A golden rectangle is a rectangle where the ratio of the longer
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3.86 | Source: Bank Alfalah Annual Report 2011 Profit after taxation for the year 2011 is Rs 1‚762‚691‚ which is just an increase of 3.5%‚ however earning per share‚ a ratio that is closely looked over by the shareholders of a company decreased from Rs. 3.92 to Rs. 3.86. The major reason for this decrease in this ratio is mainly the small increase in profits before taxation‚ increase in provisions and finally‚ the increase in share capital of Rs. 2 million from the past year. Figure [ 2 ]:
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Introduction to the companies. Cargills (Ceylon) PLC Cargills is Sri Lanka’s largest modern retailer. Its pioneer venture into modern trade was an innovation of the company’s trading legacy. Thereafter Cargills Food City continued to challenge the norm by taking to the masses what was traditionally an affluent focused business and offering ‘higher value for the lowest price’. Today the Cargills retail operation is spread across the island as ‘Cargills Food City’ supermarkets and ‘Cargills
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ASSIGNMENT COVER SHEET (to be completed by the student) AIB student ID number: Student name: Course name: Subject name: Subject facilitator: Teaching Centre: No. of pages: Word count: DECLARATION A12855 ADRIAN MARK BISRAM MBA FINANCE 712 SFI – STRATEGIC FINANCIAL ISSUES MS. RENEE POPPLEWELL SCHOOL OF HIGHER EDUCATION LIMITED 9 1638 I‚ the above named student‚ confirm that by submitting‚ or causing the attached assignment to be submitted‚ to AIB‚ I have not plagiarised
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A Project Report On “Financial Analysis of Bansal Biscuit Pvt Ltd.” Submitted to In partial fulfillment for the course of “Post Graduate Diploma in Management” Under the Supervision of: Submitted By: Prof. PRADEEP VERMA PRASHANT KUMAR Faculty & Guide at AIMT Batch PGDM (2012-14) Roll No. DM1214126 Accurate Institute of Management & Technology‚ Greater Noida
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Ratio Analysis Ratio analysis is used to evaluate relationships among financial statement items. The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity‚ profitability‚ and solvency. Liquidity Ratios Liquidity ratios measure the ability of a company to repay its short‐term debts and meet unexpected cash needs. Current ratio The current
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