Ratio Analysis For Company G

Improved Essays
Register to read the introduction… Earnings per share of common stock: Profit allocation to outstanding shares on common stock is measured by this ratio. Company G jumped from a $0.672 in 2001 to a $1.03 for the year 2012. Benchmarks for the quartile industry are 0.83/0.87/0.9. Earnings per share of common stock for Company G represent and increment above average. Earnings per Share of Common Stock represent strength for Company G. L. Price earnings ratio: This ratio values current share price and compares to earnings per share. An increment from $5.21 in 2011 to $5.57 for the year 2012, although a weak separation, represents a ratio above quartile industry data ($5.5). Best case scenario would be to see that ratio increase greatly. According to MSN, Home Depot ratio is 20.9. Industry average represents a $21.0 ratio. Price Earnings Ratio represents weakness for Company G. M. Book value per share of common stock: Measurement to determine levels of share safety once debt is paid. An increment from 20011’s $4.25 to a $5.87 ratio in 2012 tops quartile industry benchmarks (4.9/5.5), 6.0 being the highest. Book Value per Share of Common Stock represents strength for Company G. …show more content…
Inventory Turnover Trends
Company G keeps up with industry average (5.2 in 2012) 2. Current Ratio for Average Trends
Company G keeps up with industry average (1.86 in 2012) 3. Debt to Worth Industry
Company G shows ratios below industry competitors (1.5 in

Related Documents

  • Great Essays

    Net profit margin 27.32 25.91 24.89 1.813 4.10 Return on equity 30.45 35.72 36.39 29.16 -2.61 Return on assets 17.87 19.34 16.69 9.71 -0.65 Return on Capital 22.33 23.85 22.08 16.06 2.08 Income/Employee 960 1,043 934 655 -55 Revenue Employee 5,342 6,186 15,727 4,782 5,594 Revenue turn over 1.00 1.15 1.02 0.83 0.56 Inventory turnover 61.80…

    • 595 Words
    • 3 Pages
    Great Essays
  • Improved Essays

    If ratio is low, it may indicate that a company may be overstocking or overbuilding its inventory or that it may be having issues selling products to customer. If ratio is high then inventory is sold quickly and is good for the company. The higher the ratio the better. CanGo’s Debt to Equity Ratio, meanwhile, stands at .67 Amazon debt equity ratio is Debt/Equity Ratio measures how much of the company is financed by its debtholders compared with its owners. If the ratio is high then the company has a ton of debt.…

    • 329 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    To wrap up, Skyworks Solutions posted solid fourth quarter, 2015 results. The quarter’s revenue and Diluted earnings per share surpassed the expectations. In addition, the quarter posted increased revenue, gross profit, operating income, and net income. The Diluted earnings per share for the quarter went up to $1.52 from $1.12 for the fourth quarter, 2014. The forward P/E ratio shows company’s rapid future growth.…

    • 486 Words
    • 2 Pages
    Decent Essays
  • Great Essays

    Peyton Approved Case Study

    • 1050 Words
    • 5 Pages

    The numbers in all three of those ratios yield right in line with a business who is performing at a profit…

    • 1050 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    This implies the firm was still making sales, but as an analyst these figures are concerning as all these ratios deal with decreased profitability and how it related to return to shareholders, and impact from sales. 4. The ratios for Harrod’s Sporting Goods look much better when the extraordinary loss has been removed from the equation. One can see how well the company is truly performing. The firm has experienced an increase in profit margin, return on asset, and return on equity for three consecutive years.…

    • 503 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    The price, earnings ratio is an effective way to compare shares as it takes into account the price as a comparator, although this can not be used for Quickflix as it has a negative EPS. Dick Smith’s price, earnings ratio is 12.1 cents, and the retail sector’s is at 16.2…

    • 805 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    Avery Dennison

    • 801 Words
    • 4 Pages

    Earnings growth of AVY are shown to be 15.96% for the last 6 months and 19.78% for the last 12 months and latest quarter earnings surprise to be 7.92% (from Zacks). Short-Term (5 years, Zack) and Long-Term (estimate average for next 50 years) growth are 9.95% and 8%. Expected Return of the company based on our valuation is 9%. Currently, AVY P/E ratio is 20.2, justified P/E is 25.0 and P/E ratio of the Chemical (Specialty) industry is 25.1. POSCO ADR…

    • 801 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Costco Financial Ratios

    • 1565 Words
    • 7 Pages

    Financial Analysis of Costco Wholesale Corporation Researching companies without the annual report is like exploring a cave without a flashlight. This analysis of Costco Wholesale Corporation proves stakeholders benefit by using information published in annual reports to analyze the past, present and future financial well-being of publicly traded organizations. Whether one is an investor, a commercial loan officer, financial analyst, or a manager of the corporation, the annual report provides insightful data and information that is crucial in determining profitability, liquidity, debt, risk factors, sustainability, competitive environment and overall health and likely direction of the company. The four primary financial statements found…

    • 1565 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    One way these calculations have been developed and analyzed is through the use of ratios. Financial ratios produce a numerical value that can then be compared to other businesses or even to industry averages. The results following the financial statements for the Moserk Company produces interesting outcomes. When compared to the industry averages, there were a few that proved…

    • 709 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Husky Energy Case Study

    • 774 Words
    • 4 Pages

    Husky Energy Inc. is a publically traded company found on the Toronto Stock Exchange (TSX) (Infomart). They are a large scale business that provides energy to various areas of the world, but are most known for their oil and gas endeavours in North America. This makes the business extremely lucrative at times, but it can also change very quickly. Studying the volatile business is key in making an educated and informed decision on whether the business is a good or bad investment. This needs to study current share pricing against last year’s pricing, the price to earnings ratio, revenue, and market capitalization.…

    • 774 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    1. Introduction 1.1 Background on Financial Ratio Analysis Lenders and investors alike often use financial ratio analysis when determining the performance, solvency, and general business practice of a firm. Ratio analysis can serve as a tool to understand the relationship between quantities, and can be a useful benchmark in the comparison of two or more organizations within a common industry (Faello, 2015). The use of these ratios can determine factors such as asset and debt management, as well as calculating return on equity. By using public source documents, such as a firm’s income statement and balance sheet, a perceptive individual should be able to decipher the data into an organized format, which could reveal major indicators on the…

    • 1945 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    Fedex Porter's 5 Forces

    • 724 Words
    • 3 Pages

    It is ideal to keep a company’s price to earnings ratio relatively low…

    • 724 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The basic earnings of a stock is determined by the net income minus preferred dividends divided by the weighted average number of common stock shares outstanding during a reporting period (Weygandt et al., 2013). Some companies that have a more complex capital structure dilute the earnings per share. Shares such as stock options, warrants, convertible preferred stock, and secondary equity offerings can dilute the EPS (Investopedia, 2015). These factors increase the number of outstanding shares, therefore diluting the overall EPS. For an investor, it is more important to focus on the diluted earnings per share as that will give the investor a more accurate picture as to what the share of stock is actually…

    • 719 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Glanbia Case Study

    • 1117 Words
    • 5 Pages

    Earlier this week, Glanbia released its 2015 figures showing a total group revenue of €3,667.4m and earnings before interest, taxes and amortization (EBITA) at €310.7m – up from €245.0m in 2014. Adjusted earnings per share was 79.14c. Similarly, trading profit at Kerry Group plc in 2015 increased by 10% to €700m, while sales revenue on a reported basis increased by 6.1% to €6.1 billion. Kerry also announced earlier this week that business volumes progressively improved during 2015, delivering 3.8% year-on-year growth. “I think you can see from the share price reactions that both results have been pretty well received, even though there are a couple of different drivers across both sets of accounts,” Gorman said.…

    • 1117 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Price-earnings ratio for the year 2005 is -0.018 times while in year 2003 is 0.021 times. Since earning per share is below zero in the year 2003, it is considered as loss per share and results in negative price-earnings ratio. Price-earnings ratio can be negative mathematically but it is financially not acceptable. Therefore, price-sales ratio is used to compare between the both years. Price-sales ratio in year 2005 is 1.45 times which is lower than 1.80 times in the year 2003.The lower the value, the more attractive the market will be as the investors will pay lower for each sale that takes place in the company.…

    • 1108 Words
    • 5 Pages
    Superior Essays