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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Regulating Inventory – An Examination of AASB 102 “Inventories” Inventories are in essence what organisations hold with an intention to sell‚ however directly or indirectly. For most businesses‚ this is how their profits are made‚ and it is reasonable to assume that these items account for much of an organisation’s activities. Such a big influence on indicators of financial performance and position warrants an equally large need for regulation to ensure that users of the financial statements are
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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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How would you recommend we go about reducing the turnover in our stores? Whether the organization has one employee or 100‚ recruiting and retaining plays a very important role in an organization’s efficiency and profitibility. High employee turn over affects companies in a number of ways. Since every minor detail cannot be documented‚ when an old timer leaves‚ he takes with him a major share of valuable organizational knowledge with him. These people also boosts up the morale of the fellow
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Ratio Analysis – Unit II Problem 1 A company having the Net working capital of 2.8 Lacs as on 30.06.10 indicates the following financial ratios and performance figures Current Ratio 2.4 Liquidity ratio 1.6 Inventory Turnover 8 (on cost of sales ) Gross Profit on Sales 20% Credit Allowed (months ) 1.5 The company s fixed Assets is equivalent to 90% of its net worth ( Share capital plus reserves ) while reserves amounted
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leverage. In contrast‚ Dell’s debt to equity ratio is much higher than HP’s debt to equity ratio. This means HP’s returns to investor are more solid than Dell. P/E ratio (weakness) The stock market is pessimistic about Dell’s future earning ability. This is due to the recession in 2008. Dell’s major business is selling computer and accessories‚ in the recession consumer tends to spend money on life essential goods such as food and gasoline. Dell’s P/E ratio is ranged from 70.7 in 1999 and gradually
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CHAPTER I Introduction Background of Study An inventory system is basically a process whereby a business keeps track of the goods and material it has available. In its simplest sense it can be done manually by a count at the end of each day. In this way it is possible to keep a record of the goods coming in to the business and goods being sold. However this is only really appropriate for small businesses that do not have a lot of stock. For larger business it is more likely that a computerized
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Take-Home Exam – Marketable Securities & AR/Inventory Management Name: _________________________ Score:____________ I. Selection __________1. A company which foregoes the discount when credit terms are 4/15 net 70 is essentially borrowing money from his supplier for an additional: (A) 40 days (B) 55 days (C) 70 days (D) 85 days. __________2. A company that foregoes a discount of 1/7 net 30 is essentially borrowing money from the vendor at: (A) 1% (B) 12.29% (C) 16% (D) 52.7%. __________3
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The Golden Ratio By : Kaavya.K In mathematics and the arts‚ two quantities are in the golden ratio if the ratio of the sum of the quantities to the larger quantity is equal to the ratio of the larger quantity to the smaller one. The golden ratio is an irrational mathematical constant‚ approximately 1.6180339887. Other names frequently used for the golden ratio are the golden section and golden mean. Other terms encountered include extreme and mean ratio‚ medial section‚ divine
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