Benefit-cost ratio

Poor customer service or brand image) Opportunity – presence of a situation where performance can be improved by undertaking new initiatives (Eg. Arnotts – demand for healthier food) Symptom – mere evidence that a problem exists (Eg. Loss of market share, drop in sales) Role of the researcher – once a problem or opportunity has been senses, the researcher comes into the picture First responsibility is to work with the managers to clearly articulate the management problem whose symptoms have…

Liquidity Ratio: In figure 1, the current ratio illustrates Imperial Brands ability to pay their current liabilities. Imperial Brands were not likely to pay their current liabilities in 2012 and 2013, since a current ratio that is below 1 is not a good sign. However, their current ratio increased significantly in 2014 and 2015, since their current liabilities reduced and their current assets increased. Moreover, Imperial Brands’ current ratio is lower than the industry current ratio, which…

 3.3 Short- term Solvency: The Short term solvency ratio computes whether the income of an organization is adequate to deal with the fleeting commitments (Droms & Wright 2015). It incorporates current ratio, Acid Test ratio and Cash Flow from Operations to Liabilities. I have computed all the three proportions for the organization. Firstly, Current Assets measure the liquidity which is truly imperative to manage liabilities inside a year (Droms & Wright 2015). The standard is 2:1; lower than…

Ratios can be used to monitor and interpret financial performance of Saira Computers. Ratio analysis is an effective way to compare overall performance of Saira Computers in the industry. There are three different ratios which are profitability, liquidity and efficiency. Profitability ratio measures how much profit Saira Computers generate, in this ratio, there are three main ratios which are gross profit and this margin measures gross profit of this business as percentage of sales revenue and…

and weaknesses of the company is ratio evaluation. Ratio analysis as a method of analysis and interpretation of financial statements. It is the technique of setting up and interpreting various ratios for assisting in making positive selections. “Financial ratio evaluation is the calculation and contrast of ratios which might be derived from the information in a organization 's financial statements. the extent and historical traits of these ratios may be used to make inferences…

because it is the fastest flow of assets into cash in a normal business process, and fundamentally affects the cash flow Inventory turnover measures the conversion speed between inventory and sales and is defined by the average inventory divided by the cost of goods sold. Aristocrat 's inventory turnover of 8.42times is higher than the industrial average level, but there is only 1.99 times inventory turnover for Ainsworth. The low inventory turnover means that it may hinder the cash flow.…

PROFITABILITY RATIO Gross Profit Margin Gross profit margin is a standout among the most essential marker to measure organization's well-being. Gross profit is the balance that the organization have ubtracting the cost goods produced from the sales figure. In this way, gross profit margin is the percentage of gross profit from the business esteem that organization accomplished. The higher the percentage of gross profit margin the better. The industry average of gross profit margin was 22…

projected to increase by $150,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 9% are projected to be uncollectible. Additional collection costs are projected to be 3% of incremental sales (whether they actually end up collected or not), and production and selling costs…

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…

Concepts of CVP (Cost Behaviour Analysis?) Contribution Margin Contribution margin (CM) is a cost accounting concept that allows a company to determine the profitability of individual products (Investopedia, 2015). In short, it is equivalent to the revenue less the total variable cost (Horngren, Datar, & Rajan). The CM per unit measures the amount of each unit sold contributes to cover fixed costs and increasing profit and also considers what happens when sales and production increase by one…