Investor Ratios There are various ratios that are designed to help investors who hold shares in a company to assess the returns on their investment. These are: Dividend per Share The dividend per share ratio relates the dividends pertaining to an accounting period to the amount of shares in issue during the period. The ratio is given as follows: Dividend per share = Dividends pertaining to a period Number of shares in issue The ratio provides an indication of the cash return
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Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets) Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity Investment Ratios Earnings per Share
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Memo To: Huffman Trucking CEO From: Accounting Date: Re: Ratio Analysis Listed below you will find the findings from the current and quick ratios calculations. Huffman trucking’s current 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
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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
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Assignment 2.2: Ratio Analysis Name | | Part 1: Enter the information based on your computations. | 2011 | 2010 | Benchmark | Favorable (F)‚ Unfavorable (U)‚ or Approximate (A)? 2011/2010 | 1. Current ratio | 3.52 | 2.59 | 2.00 | Favorable | 2. Days cash on hand | 27.64 | 18.10 | 15.00 | Favorable | 3. Days in A/R | 69.32 | 76.59 | 45.00 | Favorable | 4. Operating margin | 2.18% | 3.03% | 4% | Unfavorable | 5. Return on total assets | 5.08% | 7.13%
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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
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III ------------------------------------------------- Ratio Analysis Report ------------------------------------------------- Student: Kevin Galea 205891 (M) ------------------------------------------------- Lecturer: Dr. Emanuel Camilleri Introduction The purpose of the following report is to aid Build-It Ltd in planning the direction that the company may want to go over the next few years. The report entails a financial analysis which will give the directors an understanding of how well
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Directive & Informative Memos Review Worksheet This is a review of directive & informative memos that you learned about in Module 3. Activity 1 1. What are the 5 parts of the header of an informative memo? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 2. The ‘Subject:’ line should be _____________________________________________________
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PROFITABILITY RATIOS RETURN ON INVESTMENT (ROI): The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence‚ the return on capital employed is used as a measure of success of a business in realizing this objective. Return on Investment establishes the relationship between the profit and the capital employed. It indicates the percentage of return on capital employed in the business and it can be used to show the overall profitability
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Accountants From: Man Shu Date: 03/12/2013 Re: Financial Analysis of Cisco _____________________________________________________________________ As you concerned‚ our company need to start report comprehensive income. I made several searches for that. In this memo‚ I will illustrate comprehensive income‚ FASB codification‚ and comprehensive income‚ locate and extract relevant information
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