A. Debt Management Ratios (Leverage Ratios) The extent to which a firm uses debt financing‚ or financial leverage‚ has three important implications: 1. By raising funds through debt‚ stockholders can maintain control of a firm while limiting their investment 2. Creditors look to the equity‚ or owner-supplied funds‚ to provide a margin of safety‚ so the higher the proportion of the total capital that was provided by stockholders‚ the less the risk faced by creditors 3. If the firm earns more
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Debt/Equity Ratio What Does Debt/Equity Ratio Mean? A measure of a company’s financial leverage calculated by dividing its total liabilities by its stockholders’ equity; it indicates what proportion of equity and debt the company is using to finance its assets. http://financial-dictionary.thefreedictionary.com/debt%2Fequity+ratio ’Debt/Equity Ratio’ A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings
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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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The companies’ financial ratios can be compared with the ratios of other equivalent companies between business sectors at one point of time. These comparisons provide explanations on the relative financial status and performance of the company compared to the relative performance of its competitors. Comparisons are usually made with other companies in the same business sector and the benchmark is assumed to be the suitable value for a company. The assumption here is for the companies in the same
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critically appraise your own performance in relation to those duties The first phase of my placement at Marks and Spencer‚ Edgeware Road. As a customer service assistant‚ which role is to ensure that diligent services are giving to customers at the right time in a well behave manner. I also have the responsibility of a section coordinator whose duties is to ensure that proper documentation of duty task and activities are achieved and recorded. Such roles includes: 1. Preparation of duty roster 2. Stock
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Name: Meaza Gidey ID: 2013101276 Human or National (Traditional Security) If the interests of national (state) security and human security collided‚ which do you consider first between state security and human security? Why do you think so? Even though today‚ many individuals are victims‚ not of foreign military aggression and nuclear war‚ but of violence committed against them by their own state‚ criminals‚ terrorist attacks‚ nature‚ diseases and poverty; and usually traditional or national Security
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Receivables Turnover Ratio interpretation Receivables Turnover Ratio is one of the efficiency ratios and measures the number of times receivables are collected‚ on average‚ during the fiscal year. Receivables Turnover Ratio formula is: Receivables Turnover Ratio formula Receivables turnover ratio measures company’s efficiency in collecting its sales on credit and collection policies. This ratio takes in consideration ONLY the credit sales. If the cash sales are included‚ the ratio will be affected
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My interest in nursing started when I was a sophomore in high school. I was rushed to the emergency room not knowing what was wrong with me. Through this process I had interacted with many different kinds of nurses‚ and they all stuck out to me in many variety of ways. From that moment on I knew that I wanted to be a pediatric nurse‚ to help the community in the same way they helped me. While I was in the hospital‚” instead of giving up in the face of the setbacks or disappointments‚ I stayed hopeful
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Introduction of Ratio MEANING OF RATIO: A ratio is one figure express in terms of another figure. It is a mathematical yardstick that measures the relationship of two figures‚ which are related to each other and mutually interdependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an expression relating one number to another. It is simply the quotient of two numbers. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute
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Team A Ratio Analysis Memo Liquidity Ratios section Current Ratio A company must consider current ratios when determining the Liquidity ratios; this is because a current ratio is used to determine what the company liquidity and their ability to pay the companies short term debts back. The current ratios are figured out by talking the company’s current assists and dividing them by their current liabilities. In order to become a ratio it must be taken by x: 1‚ x is the current assets for every dollar
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