Stilsim And Staffaces Receivables Ratio
Asset Management
Asset management describes how efficiently an organization uses its assets to generate sales (Dess, McNamara, & Eisner, 2016, p. 447). The two asset management ratios that are used to compare StilSim to the competitor, StaffAces, are receivables turnover ratio and days in receivables ratio.
Receivables Turnover Ratio and Days in Receivables Ratio.
The receivable turnover ratio is used to determine how quickly StilSim collects on a sale. The receivable turnover ratio is determined by diving sales by account receivables. StilSim’s receivable turnover ratio in 2016 was 3.0. This means StilSim collected on sales 3 times a year. StaffAces receivable turnover ratio in 2015 8.4 (Franklin University, 2013). They collected on sales …show more content…
StilSim’s profit margin in 2016 was 2.3%. This means StilSim generates a little over 2 cents in profit for every dollar in sales. StaffAces profit margin in 2015 was 2.7%. This means StaffAces generates almost 3 cents in profit for every dollar in sales. Strength or Weakness. The below chart of the profit margin of StilSim and StaffAces shows the trend of the two companies. The profit margin for StilSim is a weakness. The profit margin was much higher in 2011and 2012 at 14.9% and 15.5%. In 2013, the profit margin started to decrease and has continued to trend down since. StaffAces profit margin is low but has increased every year since 2011. It is desirable for both companies to have a relatively high profit margin.
ROA & ROE comparisons between StilSim and competitor. “Return on assets (ROA) is a measure of profit per dollar of assets” (book 449) The ROA is calculated by dividing the net income by total assets. “The return on equity (ROE) is a measure of how the stockholders fared during the year” (book 449). The ROE is called by dividing the net income by the total equity. In 2016, StilSim’s ROA was 2.1% and ROE was 2.7%. StaffAces ROA was 2.7% and ROE was
Asset management describes how efficiently an organization uses its assets to generate sales (Dess, McNamara, & Eisner, 2016, p. 447). The two asset management ratios that are used to compare StilSim to the competitor, StaffAces, are receivables turnover ratio and days in receivables ratio.
Receivables Turnover Ratio and Days in Receivables Ratio.
The receivable turnover ratio is used to determine how quickly StilSim collects on a sale. The receivable turnover ratio is determined by diving sales by account receivables. StilSim’s receivable turnover ratio in 2016 was 3.0. This means StilSim collected on sales 3 times a year. StaffAces receivable turnover ratio in 2015 8.4 (Franklin University, 2013). They collected on sales …show more content…
StilSim’s profit margin in 2016 was 2.3%. This means StilSim generates a little over 2 cents in profit for every dollar in sales. StaffAces profit margin in 2015 was 2.7%. This means StaffAces generates almost 3 cents in profit for every dollar in sales. Strength or Weakness. The below chart of the profit margin of StilSim and StaffAces shows the trend of the two companies. The profit margin for StilSim is a weakness. The profit margin was much higher in 2011and 2012 at 14.9% and 15.5%. In 2013, the profit margin started to decrease and has continued to trend down since. StaffAces profit margin is low but has increased every year since 2011. It is desirable for both companies to have a relatively high profit margin.
ROA & ROE comparisons between StilSim and competitor. “Return on assets (ROA) is a measure of profit per dollar of assets” (book 449) The ROA is calculated by dividing the net income by total assets. “The return on equity (ROE) is a measure of how the stockholders fared during the year” (book 449). The ROE is called by dividing the net income by the total equity. In 2016, StilSim’s ROA was 2.1% and ROE was 2.7%. StaffAces ROA was 2.7% and ROE was