4. Financial Analysis
4.1 Time Series Analysis
4.1.1 Profitability Analysis
Mayne Pharma reported sale revenue of $141.4M in 2015 underlying EBITDA of $36.4m and reported NPAT of $7.8m. The performance of 2015 seems unsatisfactory as the net profit margin is only 7.83% compared to 2014 where the net profit margin is 21.49% .These results were down due to the underperformance of products sold via third party US distributors in the first half of 2015 but the company realized the problem and has…
The purpose of these ratios is to measure if the company able to meet its financial obligation as they come due
Coverage ratios include debt service coverage ratio, Cash Debt Coverage Ratio, and the asset coverage ratio.
• Asset Coverage Ratio
This ratio looks to the balance sheet assets in comparison to debt. The ratio is a company's total assets minus short-term liabilities divided by its total debt, a ratio of two or above means that the company has sufficient assets to manage its debt.
performing the financial ratio analysis of BMW and Suzuki is looking like the fiscal performance of Suzuki is much more stronger than BMW by two-thousand-five it had one-hundred-ten-thousand- three-hundred-thirty-five dollars to BMW’s forty-six-thousand-six-hundred-fifty-six dollars in revenue, (E*Trade, (2015).
Financial Ratios for Suzuki
2005 2006 2007 2008 2009
Current P/E Ratios…
among others, and improper financial management inside the company itself. For a company like Punj Lloyd, which was on a high growth trajectory, the adverse business environment has thrown up a new set of business challenges. Below will explain the factors that causing problems, the company’s five years of financial information and the financial advice to solve the…
The current and quick ratios both increase. |
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4 out of 4 points
| If a bank loan officer were considering a company's request for a loan, which of the following statements would you consider to be CORRECT?Answer | | | |
| Selected Answer: | Other things held constant, the lower the debt ratio, the lower the interest rate the bank would charge the firm. |
Correct Answer: | Other things held constant, the lower the debt ratio, the lower the…
Table 4. Industry Average Ratios
Table 5. Ross Stores Ratios
Tables 4 and 5 represent the industry average ratios for the past five years, and the Ross ratios for the same five years respectively.
Liquidity ratios are a measure used to find a company ability to pay its short-term debt obligations. If the ratio is high, the company is successfully paying its debt in a timely matter. The tables show a decreasing trend in the industry, current ratio, quick ratio, and cash ratio…
Profitability vs. Solvency
The charts below show some of the most important aspects of the financial analysis. As you can see, CanGo is around the same ranges as Amazon and iTunes under the profitability and solvency ratios. This means that CanGo’s return on net sales is better than Amazon, however, return on net sales is not when compared to Amazon. The debt ratio is another way to see how well a company is managing their finances. As shown in the Profitability VS. Solvency…
calculating the financial ratios and analysing the income statement and balance sheet. All calculations can be found in the appendix.
The report will pay particular attention to the liquidity, short-term debt-paying ability and three issues in relation to management of inventory including; inventory turnover, number of days in a selling period and gross profit percentage.
The report will comment on these issues and provide recommendations that could help improve Japheth Enterprises…
profitability ratio. The receivables turnover from 2009 to 2011 was improving and average collection period was getting faster over time. It indicates a good performance for the company is able to get more cash from their debtors. The receivables turnover shows a significant increase in 2013, which rise to 10,4; however, in 2014 it has fallen to 7.01, with the average receivable collection period 66.36 days. It indicates that it takes 66.36 days to collect their receivables.
3.3 Solvency Ratio…
BASF - Ratio Analysis
i. Profitability Ratios
To begin with, we analyzed the most fundamental category of ratios, which are the profitability ratios.
The first two profitability ratios, “Return on ordinary shareholders funds/ (ROSF)”, and “Return on capital employed/ (ROCE)” are almost stable for BASF from 2012 till 2014, while in 2015 they both drastically fall for an average of 4 points, till 2016. These two ratios indicate a gradual decrease in net profits…