Ratio Analysis: 2009 | 2010 | 0.53 | 0.51 | Current Ratio: Analysis: 2:1 is the benchmark of current ratio. Here in 2007 current asset is 0.53 against 1 current liability. In every year the company is unable to increase their current ration. Because the current ratio in 2010 decreases to 0.51. The company has a small amount of current asset for each amount of current liability in every year and its improvement was not that much remarkable. Though the company never crossed
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RATIO ANALYSIS (ALL VALUES IN Rs. MILLION) 1. GROSS PROFIT MARGIN (%): GROSS PROFIT = NET SALES – COGS = TOTAL REVENUE – (Employee Benefit Expense + Operating and Other Expenses + Finance Costs) = 53107 – (22510+21598+1025) = 7974 GROSS PROFIT MARGIN = (NET SALES – COGS)/NET SALES = (7974/ 53107)*100 = 15.01497% 2. RETURN ON ASSET(RoA) RETURN ON ASSET = (PAT/TOTAL ASSET)*100 = (4606/63454)*100 = 7.258% This indicates that around 7.3% of all assets have been utilized
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better known as ratio analysis. Ratios are among the more widely used tools of financial analysis because they provide clues to and symptoms of underlying conditions.2 Ratios help measure a company’s liquidity‚ activity‚ profitability‚ leverage and coverage.1 These five measured sections show how ratio analysis is used in decision-making‚ how a firm can measure its financial situation and financial performance‚ and the strengths and weaknesses of the company. The term ratio analysis can be broken
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RATIO ANALYSIS AS A TOOL FOR DETERMINING CORPORATE PERFORMANCE ( A STUDY OF SELLECTED BANKS IN NIGERIA) RATIOS ANALYSIS AS A TOOLS FOR DETERMINING CORPORATE PERFORMANCE :( A STUDY OF SELECTED BANKS IN NIGERIA) BEING A RESEARCH PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) OF AHMADU BELLO UNIVERSITY‚ZARIA NIGERIA DEPARTMENT OF BUSINESS ADMINISTRATION‚
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Accounting and Finance: Managerial Use February 19‚ 2011 Class Project: Ratio Analysis The gross profit percentage is one of several key measurements a company uses in evaluating its financial performance. It helps a company to see what percentage of its earning after costs (for products and/or services) is profit. A higher gross profit percentage is generally preferred as it provides the company with financial resources to pay for research‚ product development‚ and other costs
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ratio’s Introduction: The aim of this report is to conduct an analysis of the financial statements of J. Sainsbury plc and Tesco plc for the year ending 2013‚ comparing both companies by looking at the ratios calculated and looking at the importance of supplementing financial analysis with non-financial considerations. Tesco is Britain’s leading food retailer and the third largest in the world. Tesco opened in 1929. After joining the eighties trend for
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Ratio Analysis Name: Agbasimelo E. Ifeanyi Roll no: @00316215 Instructed by: David Wright PART A PAGE 1.1 Sales turnover index 4 1.2 Gross profit margin 4 1.3 Net profit margin 5 1.4 Return on capital employed 5 1.5 Current ratio 6 1.6 Acid test ratio 7 1.7 Interest cover 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 Analysis No company can remain in business if it cannot sustain and grow its profits and banks are no exemption. If Bank Alfalah wants to become a premier banking institution and to satisfy its customers‚ it itself needs to become a profitable organization‚ that not only has growth in profits‚ increase its assets but also provide its shareholders with the maximum return so that they are also satisfied. * Operational Result Profit Comparison for 2010 & 2011 Description |
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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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