The major profitability ratios are: 1.1.1.1 RETURN ON CAPITAL: Describes the earning capacity of the enterprise and it is measured by the following ratio: Profit before interest and taxation Average operating Assets The Return On Capital ratio measures how well the average operating assets (assets such as debtors‚ cash‚ fixed assets‚ stock) are generating the company s income‚ and is indicative of the management techniques applied by the company to utilise its assets
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Old Exam Packet – Acct 284 Fall 2009 Exam 1 – Fall 2008 Investing activities: a. involve day to day events like selling goods and services‚ which occur when running a business. b. involve the buying or selling of land‚ buildings‚ equipment‚ and other longer-term investments. c. only involve financial exchanges. d. All of these. Accumulated depreciation: a. is an expense account. b. is a liability account. c. is a regular asset account. d. is an asset contra-account.
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been to mandate nurse staffing ratios. In 1999 California became the first state to mandate minimum nurse-to-patient ratios in hospitals. California is not the only state to enact minimum nurse staffing ratios for hospitals‚ over the past four years at least eighteen other states have considered legislation regarding nurse staffing in hospitals. Policymakers are forced to consider alternatives to nurses ratios due to nurse shortages. Whether minimum staffing ratios will improve working conditions
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Defining Key Ratios: http://www.equitymaster.com/detail.asp?date=01/05/2010&story=3&title=Investing-Back-to-basics-XXI * Net interest margin (NIM) * Operating profit margin (OPM) * Cost to income ratio * Other income to total income ratio Net interest margin (NIM): Just as we calculate and measure performances of non-financial companies on the basis of their operating performance (EBITDA margins)‚ the performance of banks is largely dependent on the NIM for the year. The difference
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Financial Ratio Formulae http://www.HelpWithAssignment.com Liquidity Ratio 1. Current Ratio = Current Asset / Current Liabilities 2. Quick Ratio = (Current Asset – Inventory)/ Current Liabilities 3. Net working capital to sales ratio = Current Asset - Current Liabilities/ Sales Profitability Ratio 1. Gross Profit Margin = Gross Income / Sales 2. Operating Profit Margin = Operating income/ Sales 3. Net Profit Margin = Net Profit/ Sales Operating Ratio A ratio that
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Irrational Ratios 1 of 5 http://www.journalofaccountancy.com/Issues/2001/Aug/IrrationalRatios... FRAUD The numbers raise a red flag. BY JOSEPH T. WELLS AUGUST 2001 inancial statements tell a story‚” says accounting professor W. Steve Albrecht‚ “and the story should make sense.” If not‚ it’s possible the story is a fake. By standing far enough back from the numbers to get a good picture of the client’s business‚ auditors frequently can detect signs of financial statement frauds
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The Shadows of Homeric Herpes & Heroines in the selected Modern Popular Computer Games Defense of the Ancients‚ Heroes Of Newerth‚ League Of Legends‚ otherwise known as DOTA‚ HON and LOL are today’s most popular computer games played by people of all ages. These computer games are so popular that every year they generate more than 9‚000‚000 players‚ tournaments being held all over the world‚ pot money of the champions reaching up to $10‚000‚000 and these games are made as icons for most people in
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and Whole Foods Financial Ratio Analysis Corporate Finance Case 1 Financial Analysis of Whole Foods and Kroger Kroger and Whole Foods are the two giants in the grocery industry; however‚ their capital structure and financial measures paint vastly different pictures. The liquidity ratios‚ which measure short term solvency of the company‚ were calculated for both companies. The current ratio for Kroger was calculated to be .76 compared to a current ratio for Whole Foods of 1.60. At
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like in the North American wholesale club industry? Which of the fi ve competitive forces is strongest and why? Use the information in Figures 3.4‚ 3.5‚ 3.6‚ 3.7‚ and 3.8 (and the related chapter discussions on pp. 57-70) to do complete five-force analysis of competition in the North American wholesale club industry. 2. Do all three warehouse club rivals—Costco‚ Sam’s‚ and BJ’s Wholesale—have highly similar strategies? What differences in their strategies are apparent? Does one rival have a better
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Price/Earnings Ratio Model (P/E) The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular metric of stock analysis. A valuation ratio of a company’s current share price compared to its per-share earnings. For example‚ if a company is currently trading at $60 a share and earnings over the last 12 months were $2 per share‚ the P/E ratio for the stock would be 30 ($60/$2). The earnings multiplier can be computed as follows: P/E Ratio = Current Market
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