vii. Debt-Equity Ratio = Total Debt/Total Equity = ($ 108‚615‚000 – $ 55‚341‚000)/ $ 55‚341‚000 = 0.963 viii. Interest Coverage = EBIT/Interest Expenses = $ 23‚946‚000/$ 3‚009‚000 = 7.958 ix. Equity Multiplier = Total Assets/Shareholders’ Equity = $ 108‚615‚000/$ 55‚341‚000 = 1.963 x. Profit Margin = Net Income/Sales = $ 12‚562‚200/$ 167‚310‚000 = 7.508% xi. Return on Assets (ROA) = Net Income/Total Assets = $ 12‚562‚200/$ 108‚615‚000 = 11.566% xii. Return
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Sons Professional Publications Ackerman‚ R‚ (2002)‚ Financial Management‚ Prentice Hall Publications‚ Bernard‚ R‚ (2006)‚ Quantitative and Qualitative Research‚ McGraw Hill Publications Borodovsky‚ M & Gogarten‚ P‚ (2010)‚ Financial Management Oxford Publications Blaxter‚ L & Hughes‚ C‚ (2006)‚ Financial Management‚ McGraw Hill Publications‚ Umit‚ S and Carrier‚ A‚ (1998) Financial Management‚ Pearson Group Publications Ansari‚ S (2002)‚ Financial Management‚ John Wiley Sons Professional Publications
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Strategy‚ Management and Leadership Individual Report 1 Business-level Strategy of Nestle Nestle is an international brand with a portfolio in almost every food and beverage category. The brand is consumed daily by a majority of people‚ from its confectionary to it dairy brands and on to it’s beverages. With around 8000 brands it is hard to stay away from them. The company shows it’s size when figures such as 468 factories spread over 86 countries are some statistics‚ with the company employing
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Objectives of Financial Management The objectives provide a framework for optimum financial decision making. The term objective is used in the sense of a goal or decision criterion for the three decisions involved in FM. It implies that what is relevant is not the overall objective of a business but an operationally useful criterion by which to judge a specific set of mutually interrelated business decisions namely investment‚ financing and dividend policy. The two main objectives of FM are:
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B6013 Spring 2010 B6013 - Financial Accounting Financial Assets and Liabilities Shareholder’s Equity Professor Urooj Khan o esso U ooj a Outline – Session 19 1. Financial Assets and Liabilities – Accounting for Financial Assets 2. Shareholder’s Equity – – – – Capital Stock Cisco Case Dividends and Share Repurchases Comprehensive I C h i Income B6013 Spring 2010 © Columbia Business School 2 Prof. Urooj Khan 1 B6013 Spring 2010 Background Readings and Practice Problems
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management The concept of strategy ➢ Strategy is the great work of organization. In situations of life or death it is the Tao of survival or extinction. Its study cannot be neglected. ----SUN TZU‚ The Art of War.2500 B.C ➢ Strategy is about winning. ➢ Strategy is not a detailed plan or program of instructions‚ it is a unifying theme that gives coherence and direction to the actions and decisions of an individual or an organization. Characteristic of a winning strategy ➢ Goals that
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Wealth/Poverty/Social Class The question of the United States national budget and any resolutions to this dire struggle are deeply rooted in the controversial ideas presented by Thomas Malthus in an excerpt‚ “An Essay on the Principle of Population” that states‚ “… in every society in which the population increases it will eventually produce more people than it can feed‚ thereby condemning a certain percentage of the population to live beneath the subsistence level” (324). The idea that
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Financial Management Questions- Short answers and Multiple Choice Short Answer 1. What is the difference between stock price maximization and profit maximization? Under what conditions might profit maximization not lead to stock price maximization? 2. Assume that you are serving on the board of directors of a medium-sized corporation and that you are responsible for establishing the compensation policies of senior management. You believe that the company’s CEO is very talented‚ but your
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market presents in China. Why GM entered into China in 1997 GM had a long term vision in China and saw the opportunity for mid to high end auto market. As China’s economy grows‚ the people’s wealth will grow and demand high quality of life. GM entered into China in 1997 during the Asian Financial Crisis‚ they took the opportunity when the Chinese government needed foreign investment the most during the economy down turn. GM build their unique value proposition using their Buick model which
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FINANCIAL RATIOS Gross Profit to Sales (Gross Profit Ratio): profitability ratio that shows the relationship between gross profit and total net sales revenue. Gross margin/Net sales The gross margin is not an exact estimate of the company’s pricing strategy but it does give a good indication of financial health. Without an adequate gross margin‚ a company will be unable to pay its operating and other expenses and build for the future. In general‚ a company’s gross profit margin should be stable
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