Treynor ratio

4.4 Performance and Value Price to earnings ratio, is a ratio used to value a company, it measures the current share price relative to earnings per share and is indicator of the value of the organisation. The main objective for a company is to create wealth for its shareholders (Petty et al, 2012). REG and Japara were listed on the ASX after end of FY2014, due to this data is not available for comparison. Figure 4 shows good price earnings per share for both companies, with REG showing a greater…

Activity Ratio Table 1 shows Target’s main financial ratios from fiscal year of 2013 to 2017, and it will be used for Target’s profitability and risk analysis. First, the activity ratio measures a firm’s ability to convert different account into cash or sale. Target’s account receivable turnover ratios have been increased since fiscal year (FY) of 2013, which means Target is able to collect account receivable into cash very fast, and they are improving its process each year. Notices that the…

Financial Report Ratio Analysis Selected Companies: Tesco plc. & Sainsbury plc. Country: United Kingdom Table of Contents 1 Introduction 2 2 Analysis of Financial Performance of the Two Companies 4 2.1 Profitability 5 2.1.1 Gross Profit margin 5 2.1.2 Operating Profit margin 5 2.1.3 Net Profit margin 5 2.2 Liquidity 5 2.2.1 Current ratio 5 2.2.2 Quick/Acid test ratio 6 2.3 Efficiency 6 2.3.1 Asset Turnover 6 2.3.2 Receivables Collection Period 6 2.3.3 Payables Payment Period 6 2.3.4…

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…

It seeks to keep in view the socio economic environment in India, where capital is scarce and labor is abundant. However, a definition exist only for tiny and small units, medium sized enterprises are not defined either technically or legally. Industrial undertaking in which the investment in fixed assets in plant and machinery, excluding land and building, whether held on ownership terms or on lease or on hire purchase, does not exceed Rs. 1 Crore. WORKING CAPITAL MANAGEMENT Decisions…

Historically, parliament should make the law and judges simply apply the law, this fits in with the separation of powers theory. Blackstone 's dictation theory also states this. Judges create law by precedent and statutory interpretation. Under the Literal Rule judges have very little scope for judicial creativity as they are limited to giving words in the Act of Parliament their plain, ordinary, grammatical meaning from a standard English dictionary, this means judges are following the exact…

Financial Statement Fraud Investigation Frisbey (2015) indicated that forensic accountants should be able to effectively communicate with the management and involved personnel as to the factors of the existence of fraud indicators, to be able to perform essential analytics and independent testing such as horizontal and vertical testing techniques to detect fraud or to examine the validity of evidence being investigated (p.8-9). Frisbey mentioned that forensic accountants should, for example,…

the impact on ROE as stated above). Combined with Orica's Debt to asset ratio increasing from (XX) to (XX) in 2012, Orica is financing almost 60% of its assets through debt (increasing their total liabilities by $624m). Orica needs to review its borrowing practises and debt financing as these high ratios show that they are relying more on debt than in the past (which results in increased interest expense). These high ratios also imply that Orica is becoming more capital intensive, which is…

the company to invest in, are Current Ratio, Acid Test (Liquidity), Receivable turnover ( activity), financial leverage, debt ratio, Degree of indebtness (debt), Gross Profit Ratio, Net profit Margin, Earnings per share, among others.…

ESSAYS: (4 QUESTIONS, EACH WORTH 5 POINTS) 1. Describe and discuss the Investment Pyramid including its financial foundation. A venture procedure in which a speculator enhances the danger of his/her portfolio while likewise leaving the likelihood for a substantial return. One does this by putting a large portion of the financial specialist's cash in generally safe speculation vehicles; this structures the "base" of the pyramid. The base (the widest part of the pyramid) would contain government…