ROE： ROE= Net income/ average stockholders’ equity
2011 2010 2009
ROE 2.69% 3.95% 2.02%
This comparison shows that Toyota’s performance in 2011 as measured by its ROE has improved compared to 2009. It suggests that the company has been effective during the time period. ROA: ROA= (Net income+ interest expense net of tax)/ average total assets 2011 2010 2009

ROA 1% 1.47% 0.8%
This comparison suggests that Toyota has been increasingly effective on utilizing its total assets, for instances, its total investment. Financial leverage percentage= ROE-ROA

2011 2010 2009
Financial leverage percentage 1.69% 2.48% 1.22% In year 2009, the company have the lowest leverage ratio among the three years, thus it suggests that it utilizes relatively lowest debt in its capital structure this year, which indeed means Toyota has been investing most effectively (earning a high return on investment) or borrowing more effectively (paying a low rate of interest) in year 2009. EPS=net income/ average number of shares of common stock outstanding 2011 2010 2009

EPS
Quality of income= cash flows from operating activities/ net income 2011 2010 2009
Quality of income 5.12 4.96 12.21
In the past three years, the quality of income ratio are always bigger than 1, this is considered to indicate Toyota’s high-quality earnings, because cash dollar of income is supported by one dollar or more of cash flow. And year 2009’s ratio is especially high, suggests that Toyota’s earning ability in 2009 is very high. Profit margin= net income/ net sales revenue

2011 2010 2009
Profit margin 1.53% 2.15% 1.11%
For year 2010, each dollar of Toyota’s sales generated 2.15 cents of profit. In comparison, in year 2011, the ratio is 1.53, the ratio of...

...Low Debt Ratio: How Does it Contribute to Company Performance?
Introduction
It has been said that you must measure what you expect to manage and accomplish. The same is true when one considers business performance. In a business measurement drives improvement which drives satisfaction. In turn, satisfaction results in loyalty from customers which means the financial success of a business. Without measurement, one has no reference to work with and thus, tends to operate in the dark.
One way of establishing references and managing the financial affairs of an organization is to use ratios. Ratios are simply relationships between two financial balances or financial calculations. These relationships establish our references so we can understand how well we are performing financially. Ratios also extend our traditional way of measuring financial performance; i.e. relying on financial statements. By applying ratios to a set of financial statements, we can better understand financial performance.
Statement of the Problem
The debt ratio compares a company's total debt (the sum of current liabilities and long-term liabilities) to its total assets (the sum of current assets, fixed assets, and other assets such as 'goodwill'), which is used to gain a general idea as to the amount of leverage being used by a company. It compares the funds provided by creditors to the funds provided by...

...1. What are the five major categories of ratios, and what questions do they answer?
* Liquidity: Can we make required payments as they fall due?
* Asset management: Do we have the right amount of assets for the level of sales?
* Debt management: Do we have the right mix of debt and equity?
* Profitability: Do sales prices exceed unit costs, and are sales high enough as reflected in NPM, ROE, and ROA?
* Market value: Do investors like what they see as reflected in P/E and M/B ratios?
2. What is the Significance (Importance) of Financial Ratio in Decision Making?
* Ratios facilitate comparison of:
* One company over time
* One company versus other companies
* Ratios are used by:
* Lenders to determine creditworthiness
* Stockholders to estimate future cash flows and risk
* Managers to identify areas of weakness and strength
In Detail:
* For Short term Creditors – The Short term creditors like bankers and suppliers of material can determine the firm’s ability to meet its current obligations with the help of liquidity ratios such as current ratio and quick ratio.
* For Long Term Creditors – The Long term creditors like debenture-holders and financial institution can determine firm’s long term financial strength and survival with the help of leverage or capital structure...

...-------------------------------------------------
Assignment 2012/2013 – Semester 2
-------------------------------------------------
B. Com (Major in Banking and Finance) – Year III
-------------------------------------------------
Ratio Analysis Report
-------------------------------------------------
Student: Kevin Galea 205891 (M)
-------------------------------------------------
Lecturer: Dr. Emanuel Camilleri
Introduction
The purpose of the following report is to aid Build-It Ltd in planning the direction that the company may want to go over the next few years. The report entails a financial analysis which will give the directors an understanding of how well the company is performing.
Figures were obtained from comparative balance sheets and profit and loss statements from the last two years. This information enabled the development of percentage and ratio analysis (see appendices), which was then used to create the report.
Profitability Ratios Analysis
Profitability refers to the ability to make profit from the company’s business activities. It shows how efficiently the management can make profit by using all the resources available.
A very important ratio is the Return on Capital Employed (ROCE). This shows the profit made in relation to the resources employed. Build-It Ltd’s ROCE ratios for 2011 and 2012 were calculated as 22.12% and 25.64% respectively. This increase in...

...Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities
Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets)
Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue
Return on Capital Employed = Net Profit (Operating Profit) x 100
(ROCE) Capital Employed
Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity
Investment Ratios Earnings per Share (EPS) = Net Income – Dividends on preferred stock
Average Outstanding Shares
Price/Earnings Ratio (P/E) = Market Price of Share/EPS
Aviation Industry Specific Ratios…
Available Seat Miles = Total No. of Seats Available for Transporting Passengers
(ASM) x No. of Miles Flown during Period
Revenue Passenger Mile = No. of Revenue Paying Passengers x
(RPM) No. of Miles Flown During Period
Load Factor
Quick/Acid Test Ratio = Current Assets less Stock/Current Liabilities
Dividend Yield = Annual Dividends per Share
Price per Share
Liquidity Ratios
Current Ratio = Current Assets/...

...Zhiwei Wu
Ratio Analysis of Google Company
Ratio analysis is an important way to investigate a corporation’s financial statement. It provides the detailed data that indicate a company’s financial activity, performance and how well the managers operate their company. It is very useful for the investors, shareholders and even the company’s managers when they want to understand the financial situation of the company and helps them to make the right investment decisions. Now I am trying to use the ratio analysis to analyze the Google Corporation here.
There have five different types of ratio analysis: liquidity ratios, activity ratios, leverage ratios, profitability ratios and marker ratios. All of them have different kinds of specific ratios which indicate different information about the company. But at here, I pick Current Ratio, Average Collection Period and Return on Equity (ROE) to do this analysis.
1. Current Ratio.
Current Ratio = Current AssetsCurrent Liabilities
Current Ratio indicates a company’s ability to meet its short-term obligations. The Current Ratios of Google Corporation in 2008, 2009, and 2010 were 8.76, 10.62 and 4.16. As we know that high Current Ratio indicates more liquid for a company. From the result we calculated by...

...article I chose is Solvency Ratio Analysis and Leveraging. This article tells about how solvency and leveraging are connected. It describes several ratios used to determine how a company is doing long-term. Company’s use debt and equity to start and keep their operations running. Owners or stockholders donate equity to build and maintain their company. Leverage is used to produce income and impacts a company’s long-term solvency. No matter what the economic situation is, a company needs to be able to make their interest and principal payments. If a company is highly leveraged, they can go out of business.
Debt Ratio is the most used. The equation is: Total Liabilities/ Total Assets = Debt Ratio. The numbers to figure out the Debt Ratio can be obtained from the balance sheet. This ratio indicates how much the company’s assets are funded through debt.
Debt to Equity Ratio is used to find out the company’s solvency and leverage. The equation is: Total Liabilities/ Total Equity = Debt to Equity Ratio. These numbers can be obtained from the balance sheet. A higher amount indicates the company is obtaining most of their funding through creditors. A lower amount indicates a company is able to obtain outside funding.
Times Interest Earned Ratio measures if a company can pay their interest payments. The equation is: Income Before Interest and Taxes/...

...
Ratio Analysis University of Phoenix
HCS/571 Finance Resource Management Sept 24, 2013Rosetta Stringfellow, MBA, BSRatio Analysis Ratio analysis is a widely used managerial tool that compares one number with another to gain insights that would not arise from looking at either of the numbers separately. Ratio analysis is used to examine and interpret the relationship between two numbers on a financial statement. This is done so that the managers of a facility can determine whether or not the organization needs to change any of their financial variables in order to remain competitive in their market. The ratio analysis converts numbers into meaningful comparisons which managers can use to compare their facilities with others within the same market. The management team can also use the ratio analysis to see how the facility is performing from year to year. In sum, ratio analysis shows the strengths and weaknesses of a health care facility (Finkler, Kovner, & Jones, 2007).
The financial data for this paper are from the financial statements of Norwalk Hospital located in Fairfield County, Connecticut. Common size ratios allow comparisons between comparable health care organizations. It is important to see how the facility compares to others in the region of the market place (Finkler et al., 2007)....

...ASSIGNMENT #1 ETHICS CASE
TOYOTA RECALL
Reports of Runaway Cars
By: For:
|BACKGROUND |Toyota Motor Co., Ltd. was established in 1937 with Canadian operations started in November 1988. |
| |Worldwide statistics as of March 31, 2011: |
| |Capital of 397.05 billion yen (approx. Cdn$5.2 billion) |
| |Number of employees: 317,716 |
| |Number of consolidated subsidiaries: 511 |
| |Number of vehicles produced in 2010/2011 = 7,169,000 |
| |(In 2010 the two millionth Prius hybrid was sold) |
| |In 2009 there were concerns about Toyota’s product...