Preview

Suzlon Financial Graphs

Satisfactory Essays
Open Document
Open Document
395 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Suzlon Financial Graphs
Operating Profit & OPM
Operating Profit gives an indication of the current operational profitability of the business and allows a comparison of profitability between different companies after removing out expenses that can obscure how the company is really performing.
Interest cost depends on the management's choice of financing, tax can vary widely depending on acquisitions and losses in prior years, and depreciation and amortization policies may differ from company to company.

EBITDA, PBT & PAT

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. PBT stands for Profit Before Tax, and PAT stands for Profit After Tax.
The graph visually shows how the net profit of the company stand reduced due to the impact of Interest, Depreciation, and Tax.

Total Assets & Asset Turnover Ratio

Total Assets is the sum of all assets, current and fixed. The asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales.
The higher the ratio indicates that the company is utilizing all its assets efficiently to generate sales. Companies with low profit margins tend to have high asset turnover.

Net Sales

Sales is the total amount of products or services sold by the company.

Profit After Tax

Profit after tax, also referred as the bottom-line, is a measure of the profitability of the company after deducting all its expenses.

Networth

Networth is the difference between a company's total assets and its total liabilities. It is also known as shareholder`s equity.

Return On Capital Employed %

Capital Employed is defined as total assets less current liabilities. Return On Capital Employed is a ratio that shows the efficiency and profitability of a company's capital investments. The ROCE should always be higher than the rate at which the company borrows money.
Dividend

The dividend payout ratio is the amount of dividends paid to shareholders relative to the amount of total net profit of a company.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Forensic Accounting Quiz

    • 459 Words
    • 2 Pages

    1. Which financial ratio indicates the percentage of profit that is paid out as dividends?…

    • 459 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    FINANCIAL RATIOS

    • 616 Words
    • 4 Pages

    Asset Management Ratios: Show the company’s efficiency in using its assets in generating sales. Generally, high asset management ratios indicate high level of efficiency in utilising assets.…

    • 616 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Ratios compare financial data among companies or within a single company. They reflect accounting transactions and conditions of a company. To further explore ratios and their effect on transactions and finances, please complete the following.…

    • 542 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Acc 400

    • 795 Words
    • 4 Pages

    A company’s balance sheet includes both current and non-current assets. The current assets are defined as the total sum of:…

    • 795 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Buss1 Key Terms

    • 2457 Words
    • 10 Pages

    Profitability – Profitability measures profit against another variable in the business, for example you’ve got net profit margin which is profit in relation to costs, or ROC, which is profit in relation to the capital invested.…

    • 2457 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    As shown by the net profit margin ratio, there has been no increase in expenses and there is a lot of net profit available to the owners due to the fact that the expenses are much less than the gross profit. Although this may be the case, the profitability of C & V Fashions has decreased by almost a half from the gross profit to the net profit margin.…

    • 922 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Dq Wk 4

    • 373 Words
    • 2 Pages

     Profitability ratios—are the gross, operating, and net profit margins. According to Kendra James on smallbusiness.chron, “Gross profit margin measures profitability after considering cost of goods sold, while operating profit margin measures profitability based on earnings before interest and tax expense. Net profit margin is often referred to as the bottom line and takes all expenses into account”(2012).…

    • 373 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    The Balance Sheet is classified into several categories, current assets, fixed assets, non-current assets, current liabilities, non-current liabilities and equities. Current assets consist of cash and cash equivalents, receivables and inventory along with prepaid expenses. Current assets are assets the company expects to use within the current year or current accounting cycle. Fixed assets are assets such as, land and buildings used in the operations of the business. Fixed assets usually have a useful life greater than one year. Other non-current assets are assets…

    • 1520 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Case Study

    • 890 Words
    • 3 Pages

    It increased from 2004 to 2005 by .04 and then it again decreased by .04. Debt to total assets shows the relationship between the debt and total assets. This ratio shows the % by how much the assets are financed by the debts. This ratio declined slightly in 2005 and then increased slightly from 2006.…

    • 890 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    Total asset turnover ratio: This measure the efficiency of a company to use their asset to generate revenue.…

    • 447 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Bus110

    • 743 Words
    • 3 Pages

    A1 – Revenue is the total amount of money that a business takes in during a given period by selling goods and services. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses, which is to use revenue to minus salaries and expenses.…

    • 743 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Unit 5 Business Accounting

    • 1584 Words
    • 5 Pages

    ROCE (return on capital employed) – net profit/(capital employed + long-term abilities) x100 – this ratio shows the total return on the amount of share capital plus long-term debt.…

    • 1584 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Inventories consist of manufactured goods and goods acquired for resale. Manufactured inventory costs include raw materials, direct and indirect labor, and factory overhead. Net sales for NYSE: BRK.A 2015 (as shown in Fig 1) was $210, 821 (in millions) and in 2014 was $194,673 (in millions), their total assets (as shown in Fig 2) for 2015 $552,257 (in millions) and in 2014 525,867 (in millions). Increased net sales produce a figure based on sales produced by NYSE: BRK.A and the cash it anticipates on return. Total assets symbolize present and future assets which equates total liabilities and equity stake currently held on the books by a firm's equity…

    • 728 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    • Revenue activities of a merchandising business involve the buying and selling of merchandise. They purchase merchandise which is resold to customers.…

    • 1748 Words
    • 7 Pages
    Satisfactory Essays
  • Good Essays

    In the Statement of Financial Position we can see that the Total Assets are equal to the Total Capital and…

    • 831 Words
    • 4 Pages
    Good Essays