3 February 17‚ 2013 The article‚ “The Sharpe Ratio and the Information Ratio”‚ by Deborah Kidd is about the original risk-adjusted performance measure and they are Sharpe ratio and the Information Ratio. William Sharpe designed the first performance metric to insolate excess return per unit of total risk taken. The Sharpe ratio shows whether a portfolio ’s returns are due to smart investment decisions or a result of excess risk. The Sharpe ratio measure dividends average portfolio excess return
Premium Investment Standard deviation Financial ratios
1. Executive Summary: Toyota Motor Corporation is the leading global automobile manufacturer operating in more than 140 countries and boasted sales of 9.75 Million vehicles during 2012 compared to key rival General Motors at 9.29 million vehicles (Dawson‚ 2013). Toyota’s consistent delivery of superior quality‚ reliability and durability has been cited as the key success factors behind their ascension to global leadership in 2008 (Feng‚ 2010; Takeuchi‚ Osno and Shimizu‚ 2008). (Spear‚ 2004) postulates
Premium Management Strategic management Quality control
Moving Forward with Innovation and Quality: The Success of Toyota Motor Company Introduction The impact that American manufacturing companies have in our society is immense. In the 1950’s and 1960’s there was a boom in the development and growth of some of the most major manufacturing companies in the world. According to Dr. Kramer‚ “about one tenth of all American workers‚ according to the National Association of Manufacturers‚ are engaged in manufacturing. The State of Missouri has approximately
Premium
Management. Daffodil International University. 1 Introduction There is a trade-off between liquidity and profitability; gaining more of one ordinarily means giving up some of the other. Liquidity means having enough money in the form of cash‚ or near-cash assets‚ to meet your financial obligations. Alternatively‚ the ease with which assets can be converted into cash. Profitability is a measure of the amount by which a company’s revenues exceed its relevant expenses. It is obvious that excessively
Premium Management Marketing Strategic management
Freeport Indonesia 1. Please analyze the situations that are faces by Freeport Indonesia using Situation Analysis (SA) approach. 2. One of the situations faced by Freeport Indonesia was tailings deposition. Golder Associates‚ an international engineering-consulting firm‚ were engaged by Freeport Indonesia to study this problem. Eight possible options to solve tailings deposition problem were provided (see Exhibit 7)‚ then Freeport Indonesia were given recommendation to select Option 3. a. If you
Premium Decision theory Economics Costs
cost-leader • Lacked innovation in compact and mid-sized cars • Focus on SUV division and luxury portfolio • Rising gas prices – Consumers fled SUV and luxury portfolio → Strategic Failure • Costs grew disproportionately to rivals – Estimate: Costs Ford $2500/vehicle more to produce than Foreign rivals Industry Analysis • N.A. Automotive Industry: Difficult to be in – Positives • Captive but essential suppliers • High capital costs of potential entrants • Lack of feasible substitutes – Negatives
Premium Ford Motor Company
Profitability Profitability is the relationship between profit and sales and helps managers to determine how well each dollar of sales generates profits The level of profitability depends on: 1. The volume of sales 2. The percentage mark-tup applied 3. The level of expenses incurred There are three ratios to measure profitability: Gross Profit Ration (GPR) Is derived from the income statement It shows how well the company is maintaining and adequate margin between sales and purchases
Premium Balance sheet Generally Accepted Accounting Principles Inventory
FORD MOTOR COMPANY FINANCIAL ANALYSIS Table of Contents Executive Summary……………………………………………………………. 1 Introduction…………………………………………………………………….. 2 Income Statement………………………………………………………………. 3 Balance Sheet…………………………………………………………………... 4 - 5 Statement of Cash Flows……………………………………………………….. 6 Profitability Ratios……………………………………………………………... 7 Liquidity Ratios………………………………………………………………… 8 Debt/Leverage Ratios…………………………………………………………... 8 - 9 Conclusion………………………………………………………………………
Premium Generally Accepted Accounting Principles Ford Motor Company Revenue
Ratio decidendi and obiter dicta Learning objectives At the end of this module‚ you will be able to: * distinguish between ratio decidendi and obiter dicta. * apply well-established rules to identify the ratio decidendi in a decision. This module is intended as a useful exercise in revision. If you are certain that you understand how to discover the ratio in an opinion‚ you should skim lightly over this material. What is the ratio decidendi? As you probably recall from your studies
Premium Ratio decidendi Common law Law
Ratio analysis Debt ratio Debt ratio (2006-2007) = Total liabilities / Total assets = 10‚170/12‚064 = 0.84 Debt ratio (2007-2008) = 9‚210/11‚769 = Debt ratio (2008-2009) = 10‚003/11‚229 = Debt ratio (2009-2010) = 11‚043/12‚537 = Current ratio Current ratio (2006-2007) = Current assets / Current liabilities = 3‚424/4‚790 = 0.71 Current ratio (2007-2008) = 2‚164/4‚498 = Current ratio (2008-2009) = 1‚326/5‚389 = Current ratio (2009-2010) = 2‚697/6‚085 = Return on sales (ROS) Return on Sales
Premium Generally Accepted Accounting Principles Financial ratios