Contrast ratio

The total amount of money arrived by paying all the expenses and taxes which is usually distributed to shareholders is called profitability. Investors decide their investment keeping in view the profitability. The following are ratios covered in profitability and their brief overview on Tesco. a) Gross profit margin It measures the cost of goods sold as a percentage of sales giving an idea how well a company controls its cost, manufactures its products and subsequently passes…

The current ratio is a liquidity ratio that measures a company 's ability to pay short-term obligations. Home Depot’s Current ratio is below industry average. It improved during the period from 2013 to 2014 only to decline again to 2011 levels. Quick ratio has also declined during the period. Liquidity problems may arise if cash flow is low, resulting in short term debt payment challenges…

multinational company founded in the France . The company main activities are consulting, technology and outsourcing services. This paper aims to analyze the financial performance for the financial year starting from 2013 to 2016 by looking at its financial ratios and conducting a comparison of three other companies within the same industry namely ALTEN, ATOS and Sopra Steria Group. With the completion of the analysis, it can be concluded that Capgemini has a strong financial performance with…

As shown in the above graph the two ratios are used in accordance to show the liquidity of each company. The liquidity ratio is “used to determine a firm’s ability to satisfy its short-term obligations as they come due” in a firm’s operating cycle (Gitman & Zutter, p.65). The first ratio shown in the graph is the current ratio, and is one of the more popular ratios used in finance. Current ratio is a determinant of whether or not a company is able to have the funds for obligations as they…

beta from comparable companies to be industry beta, put it into CAPM to get 11.47% as cost of equity, here is a key assumption which is target D/E ratio of Broadway after acquisition. The industry has 0.547 in D/E ratio, and Broadway 0.18. Under these two scenarios, I assume Broadway will go more aggressive there fore I would to pick 0.547 as target ratio after acquisition, and then assume Broadway Credit level Baa, and then we will have our WACC which is 8.52%. Positive present value indicates…

The Caterpillar ratio analysis will focus on receivables turnover and inventory turnover. Receivables turnover is a company 's total sales divided by receivables, while inventory turnover consists of sales divided by inventory Block, Hirt, & Danielsen, 2014, p. 63). Receivables turnover grants the ability to calculate a company’s efficiency in receiving financial backing while gathering amounts outstanding on that loan. Inventory turnover ratio is the selling and replacement, of…

1.1 BARCO stands for Belgian American Radio CO-orporation.Barco is a display /monitors manufacturing company which is working in the field of digital cinema projection, video projectors, wall projectors, Image Processing, LED displays, video walls, flat panel displays, automatic luminaires, digital lighting, lighting controls, display controllers . Barco is the source of displays monitors and visualisation/projection products. Barco makes solutions for large screen visualisation/projection,…

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…

Liquidity is used to describe how easy it is to convert assets to cash. Capital structure can be described as a firm’s debt-to-equity ratio, and it tells how risky a company is. Companies who are associated with greater capital structure pose a bigger risk to investors, but the risk can be the primary source of the company’s growth. Profitability ratios are used to determine the company’s ability to generate profits relative to its expenses. Efficiency is usually known as using the lowest amount…

Asset Turnover ratio is experiencing a steady decline from 1.39 to 0.37 till 2015. The LTA turnover ratio…