Financial ratios

inventory turnover ratio explains how many times a company’s inventory is sold and replaced over a period of time. A lower inventory turnover ratio indicates that Crazy Eddie is selling fewer inventories. Asset turnover also took a pretty big plunge. The asset turnover ratio is the amount of sales generated for every dollar in assets. A low asset turnover ratio indicates that the firm is struggling to use its assets to generate revenue. In relation to this is the return on assets ratio. This…

Berjaya and Magnum both had encountered loss in their net profit. At 1QFY4/17, dividends and earnings of Berjaya were marginally below expectations because of a slightly higher than expected price payout ratio. Moreover, net profit of RM 58.7 million in Berjaya was negatively impacted by RM 9 million forex loss. A loss of RM 1.6 million was due to the dilution of equity…

This report analyzes Yellow Leaf Fashion’s financial position in 2014 using liquidity, activity, profitability and coverage ratios. The company used current ratio, current cash debt coverage ratio, inventory turnover, asset turnover, profit margin on sale, return on assets, times interest earned ratio and cash debt coverage ratio. The current ratio is a liquidity ratio that assesses the company’s operating efficiency. The current ratio is computed by dividing the company’s current assets by…

understanding and interpretation. Ratio analysis helps the analyst to make quantitative judgement with regard to concern’s financial position and performance. Ratio analysis stands for the process of determining and presenting the relationship of items and group of items in the financial statements. It is an important technique of financial analysis. It is a way by which financial stability and health of a concern can be judged. Importance of Ratio Analysis • Useful in financial position…

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 steady growth rate in terms of its Revenue and PBIT Margin. A…

would increase Kotak Mahindra Bank's fee income and enable it to deploy its capital for higher number of 'off-balance sheet' fee income-generating activities. A look at the profitability ratios of the two banks tells us that the burden efficiency ratio of Kotak is 1.34% while that of ING stands at 1.07%. The ratio for the merged entity would be…

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…

Netflix Financial Statement Analysis The online video streaming media has been in demand. But the most popular and shown to be on top of its competitors is Netflix. The company’s financial statement will be explained on how much of their success has increased in the past few years. Every company would like to expand their business and aim to be the best and the most successful they can be. But, being successful also includes taking risks. For example, taking a loan from a creditor. If a…

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…

Financial Ratios & Health Insurance Industry How do financial managers know which company is better than the other? How do organizations know their capital management is meeting industry standards? Organizations and financial managers can use financial ratios to make comparisons. Financial ratios are comparison ratios, in which are used to assess the financial stability and operational performance of a company (Block, Hirt & Danielson, 2011). Financial ratios have many benefits to financial…