This ratio defines the effectiveness of the business while utilizing its working capital blocked in debtors. It also defines the frequency of alteration of receivables into
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accounting4management.com NP ratio is used to measure the overall profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit is not sufficient‚ the firm shall not be able to achieve a satisfactory return on its investment. This ratio also indicates the firm’s capacity to face adverse economic conditions such as price competition‚ low demand‚ etc. Obviously‚ higher the ratio the better is the profitability. But while interpreting the ratio it should be kept in
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Question (a) Company’s Background History Padini Holdings Berhad began as a backend operation in Malaysia’s clothing and accessories industry. It has entered the new millennium as a major force in Malaysia’s multibillion textiles and garments industry. It is now a brand leader involved in the manufacturing‚ distribution and retail of its own fashion labels through 190 freestanding stores and in-house outlets. Besides operating in Malaysia‚ they have also carried the Made-in-Malaysia stamp
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The solvency The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. The lower a company’s solvency ratio‚ the greater the probability that it will default on its debt obligations. Current ratio The ratio is mainly used to give an idea of the company’s ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash‚ inventory‚ receivables). The higher the current ratio‚ the more capable the
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Financing Policy: 6 Financial Analysis: 6 Ratios Being Analyzed: 7 Liquidity Ratios Analysis: 7 Introduction: 7 Definition: 8 Items Involved: 8 Income Statement: 8 Balance Sheet: 8 Current Liabilities: 8 Ratios: 8 Activity Ratios Analysis: 10 Introduction: 10 Definition: 10 Items Involved: 10 Income Statement: 10 Balance Sheet: 10 Ratios Relating To Turnover: 10 Ratios Relating To Time: 10 Table: 11 Profitability Ratios Analysis: 12 Introduction: 12 Definition:
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Important Financial Ratios in Investment Analysis Introduction Financial ratios are derived ratio numbers from the financial statements of a company. Depending on the task‚ financial ratios can serve to various purposes in accounting‚ legal‚ M&A uses‚ etc. For investors‚ financial ratios are very powerful in two ways: indentifying the company’s unique competitiveness and evaluating its stock price level. The first part helps investor find a truly valuable company and the second part helps investor
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Ratio Analysis Paper Ratios describe the various relationships among accounts in the balance sheet and income statement. Financial ratios are important and helpful gauges of how an organization is functioning. An organization’s financial health‚ potential revenue‚ and even possible bankruptcy can be garnered from financial ratios. Information derived from financial statements is used to calculate most ratios and make projections. “Ratios help investors and lenders determine the risk associated
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and Operating Highlights: | Unit | 2012 | 2011 | 2010 | 2009 | 2008 | Profitability Ratios | | | | | | | Gross Profit Ratio | % | 32.52 | 28.51 | 29.55 | 29.97 | 32.20 | Operating Profit to Sales | % | 12.66 | 8.83 | 5.76 | 8.18 | 9.48 | Net Profit to Sales | % | 8.14 | 4.18 | 1.93 | 3.71 | 5.11 | EBITDA Margin to Sales | % | 14.02 | 10.62 | 7.85 | 10.40 | 11.33 | Operating Leverage Ratio | % | 288.57 | 385.63 | (81.89) | 26.28 | 159.98 | Return on Equity | % | 50.17 | 27.70
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Chemistry Experiment 6 Mole Ratio in a Chemical Reaction Background: Mole ratios of reactants are often times figured out by the use of the other products in a chemical equation. However‚ in the instance that the products’ mole ratios are unknown‚ it can be determined through the experiment. This method is called continuous variations. In this lab‚ I determined the mole ratio between Sodium Hypochlorite and Sodium Thiosulfate by using continuous variations of ratios in a given volume. This reaction
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The basic ratio includes several different categories to calculate an organization‚ gross profit and loss. In this paper you will learn about 2 different ratios analysis that are substantial in the implementation of HMO’s daily operation. Ratio analysis is an important technique‚ which is widely used for interpreting financial statements. In today’s health care environment‚ liquidity and activities are significant in the performance of HMO’s. Liquidity ratio is a measure of the company
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