LIMITATIONS OF RATIO ANALYSIS The debt-equity ratio gives an indication of an enterprise’s ability to sustain losses without jeopardizing the interests of creditors. This ratio is based only on information provided in the balance sheet. Although stockholders’ equity serves as a buffer to protect the creditors’ interests‚ it should be kept in mind that the earning prospects of the enterprise are also relevant in judging a firm’s ability to survive the long run. Although the use of ratios can prove helpful
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TWIGA CEMENT Twiga cement is a company of Tanzania that manufactures Portland cement. The company’s objective is manufacturing‚ selling and distribution of high quality construction cement in Tanzania. Today the company remains the market leader in the cement industry in Tanzania. Twiga cement is produced in grades of Twiga Ordinary and Twiga Extra. The company’s marketing environment consists of forces outside marketing that affect marketing management’s ability to build and maintain successful
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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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organization’s balance sheet and income statement to calculate the following: Liquidity ratios Current ratio Acid-test‚ or quick‚ ratio Receivables turnover Inventory turnover Profitability ratios Asset turnover Profit margin Return on assets Return on common stockholders’ equity Solvency ratios Debt to total assets Times interest earned Show your calculations for each ratio. Create a horizontal and vertical analysis for the balance sheet and the income statement. Write a 350- to 700-word
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FINANCIAL RATIO ANALYSIS OF B.H.E.L Project submitted on completion of Summer Internship 7/11/2009 BHARAT HEAVY ELECTRICALS LIMITED‚ BHOPAL Bhanupriya Vishwakarma MBA (Financial Adminnistration) Institute of Management Studies‚ DAVV‚ Indore TABLE OF CONTENTS Certificate Acknowledgements Declaration BHEL- at a glance -Introduction -Product Profile Ratio Analysis - What is Ratio analysis? - Role of Ratio analysis - Limitations of Ratio analysis Financial Statements and Ratio Analysis -Financial
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qualitative characteristics of the accounting information of the selected company which is listed on Bursa Malaysia. With this regard Lafarge Malayan Cement Berhad (LMCB) is selected‚ then analyzed and evaluated how the accounting principles they have used and the qualitative characteristic of the accounting information is published in its annual report for the year 2011.By analyzing the annual report of Lafarge Malayan Cement Berhad (LMCB) its being found that they have applied basic accounting principles
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A H.R. report on AMBUJA CEMENT PVT LTD Submitted by Santoshi maurya 118070592113 Submitted to Prof. ritika jain Sal institute of management INTRODUCTION Gujarat Ambuja Cement Limited is India’s one of the major Company in the cement industry. Its first plant “Ambuja Cement” is located near the costal town of Kodinar in the Saurashtra region of Gujarat. The area has huge deposits of limestone‚ a key of ingredient
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Ratio Analysis Return on capital employed Basically‚ it measures business performance. This ratio is used to calculate the return versus the money that is invested. Gross profit margin This ratio uses for measuring of profitability in selling‚ buying or producing goods before any other expenses are put into account. Therefore‚ any change in this figure can have an important result on the net profit margin of the year. Harrods’ gross profit margin can be divided into 2 parts which is
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Admixtures & White Cement Introduction Lehigh White Cement Company is committed to your success‚ with technical personnel who understand the interactions between white cement and common chemical admixtures ready to assist you. This technical bulletin discusses considerations experienced users of gray portland cement may overlook when making the switch to white cement. It is not intended to supplant the role of admixture suppliers who are the authorities on their products. Admixture company personnel have
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Equity: 2 2-Return on Assets: 3 3-Equity Multiplier: 4 4-Asset Utilization Ratio: 5 5-Tax Ratio: 6 6-Efficiency Ratio: 6 7-Expense Ratio: 7 8-Spread: 8 9-Burden: 9 1-Return on Equity: ROE = Net Income/Average Total Equity YEAR | 2006 | 2007 | 2008 | Net Income | 12700315 | 10084037 | 15614020 | Average Total Equity | 38949430.5 | 50120394.5 | 63172013.5 | | 0.032 | 0.020 | 0.024 | Analysis: This trend of return of asset is similar to return on equity. Its basic reason
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