All the figures were taken from the firms’ annual reports. II) Financial Ratio Analysis Financial ratios for BMW Group and Daimler Group are provided below. | Ratios | BMW | Daimler Group | | | 2011 | 2010 | 2011 | 2010 | Profitability | Return on Capital Employed (ROCE) (%) | 10.5 | 7.3 | 9.4 | 8.8 | | Return on Equity (ROE) (%) | 18.1 | 13.5 | 14.6 | 12.3 | | Net Profit Margin (NPM) (%) | 11.7 | 8.5 | 8.2 | 7.4 | | Gross Profit Margin (GPM) (%) | 21.1 | 18.1 | 24
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MBA 640 Instructor: Prof. Micheal Ulinski Jialing Zhu(U00955164) 12/11/2012 Table of Content Introduction ………………………………………………………………………………… 2 Investors Relations Website Evaluation …………………………………………………… 3 Evaluation of Contents of Annual Report ………………………………………………… 5 Financial Statement Analyses ……………………………………………………………… 6 Working Capital ………………………………………………………………………… 7 Current Ratio …………………………………………………………………………… 7 Current Cash Debt Coverage Ratio …………………………………………………… 8 Inventory
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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 ratio is also called the working capital ratio‚ as working capital is the difference
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It is the process of measuring the results of a firm’s policies and operations in monetary terms. Financial performance analysis includes analysis and interpretation of financial statements in such a way that it undertakes full diagnosis of the profitability and financial soundness of the business It is used to measure firm’s overall financial health over a given period of time and can also be used to compare similar firms across the same industry or to compare industries or sectors in aggregation
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term investor As a manager in this firm‚ how would you use this expected return? 3. Estimating Default Risk and Cost of Debt Does it have any recent borrowings? If yes‚ what interest rate did the company pay on these borrowing? 4. Short-term solvency or liquidity
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Financial Information ACC 305 Brenda Forde Financial Information It is important for every internal and external stakeholder in a company to understand if a company is being profitable or not. A company that is failing or not growing can often come from poor financial planning and analysis. The difference between failure and success come from analyzing financial information. Analyzing financial information such as balance sheet‚ income statement and cash flow statement companies can
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16.3% (Wikipedia‚ 2009). This report will be divided into four parts‚ profitability and returns to investors‚ liquidity and working capital cycle‚ capital structure and financing‚ a conclusion and recommendation‚ using trend analysis and cross sectional analysis‚ taking differences in accounting methods and changes in strategy and structure into account. Profitability and Returns to Investors: According to the profitability ratio‚ ROCE for Tesco has decreased from 14.04% to 11.45% within on year
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This is the method in which the ratio between two or more variables related to the business is compared. There are many ratios used to analyze financial statements: • Liquidity Analysis Ratio: For example‚ the net working capital ratio is calculated between net working capital and total assets. • Profitability Analysis Ratio: For example‚ return on assets ratio is calculated between net income and average total assets. Profit margin ratio is calculated between net income and sales. Earning
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Liquidity: It would seem that Microsoft has the advantage here in that they have what seems to be a pretty good number of 14.8 times in pushing their shares‚ but they seem to take a little longer in how many days it takes to get their inventory out where Oracle beats them at 13 days less. Solvency: Microsoft has the advantage here because they can cover their interest expenses better with their cash flows. Microsoft has $19459 Billion where as Oracle only has $9‚703 to cover their expenses. Microsoft
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ratio within the liquidity ratio during 2 years indicates an increase. The Quick ratio within the liquidity ratio also indicates an increase. Since prospective lenders want to see a positive current ratio‚ they would be a type of user that would be interested in this type of ratio. Since the quick ratio evaluates Huffman Trucking’s creditworthiness‚ investors would be the type of user interested in this type of ratio. The receivables turnover also is a part of measuring liquidity. It measures how
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