4-2 Why would the inventory turnover ratio be more important for someone analyzing a grocery store chain than an insurance company? The inventory turnover ratio is important to a grocery store because of the much larger inventory required and because some of that inventory is perishable. An insurance company would have no inventory to speak of since its line of business is selling insurance policies or other similar financial products--contracts written on paper and entered into between the company
Premium Management Inventory Supply chain management
Defining Key Ratios: http://www.equitymaster.com/detail.asp?date=01/05/2010&story=3&title=Investing-Back-to-basics-XXI * Net interest margin (NIM) * Operating profit margin (OPM) * Cost to income ratio * Other income to total income ratio Net interest margin (NIM): Just as we calculate and measure performances of non-financial companies on the basis of their operating performance (EBITDA margins)‚ the performance of banks is largely dependent on the NIM for the year. The difference
Premium Financial ratios Generally Accepted Accounting Principles
Limitations of Ratios used for analysis: 1. Inflation will distort a firm’s balance sheet and a trend analysis may not give a true picture of the firm’s financial performance. 2. Different fiscal year‚ example‚ a firm may have a fiscal year that ends on June 30‚ whereas another company in the same industry may have a fiscal year ends on 31 . 3. Financial analysis is performed on historical data mainly for the purpose of forecasting future performance. The historical relationships may not continue
Premium Economics Financial ratio Finance
Introduction of Ratio MEANING OF RATIO: A ratio is one figure express in terms of another figure. It is a mathematical yardstick that measures the relationship of two figures‚ which are related to each other and mutually interdependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an expression relating one number to another. It is simply the quotient of two numbers. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute
Premium Financial ratios Financial ratio Generally Accepted Accounting Principles
RATIO ANALYSIS Submitted to:- Fac. Pinakin Jaisval submitted by :- Sahista Baxi Abhilasha Kashyap Nidhi shah Company profile Tata Power is a Indian electric utility company based in Mumbai‚ Maharashtra‚ India and is part of the Group. The core business of the company is to generate‚ transmit and distribute electricity. With an installed electricity generation capacity of about 8560 MW‚ it is India’s second largest private power producer. At the end of August 2013‚ its market capitalization was
Premium Financial ratios Financial ratio Generally Accepted Accounting Principles
Nathan Walcott. RATIOS TELL A STORY-2011 The case “Ratios tell a story-2011” represents the variation to the characteristics of the industries in which companies operate. The differences in financial results and conditions among companies are the result of management philosophy and policy. Some industries reduce their manufacturing capacity to match more closely their sales prospects right away‚ while others carry excess capacity to be prepared for future sales growth. Some industries are more sensitive
Premium Balance sheet Inventory
Mystic Monk Coffee David L. Turnipseed University of South Alabama As Father Daniel Mary‚ the Prior of the Carmelite Order of monks in Clark‚ Wyoming‚ walked to chapel to preside over Mass‚ he noticed the sun glistening across the four-inch snowfall from the previous evening. Snow in June was not unheard of in Wyoming‚ but the late 2009 snowfall and the bright glow of the rising sun made him cons ider the opposing forces accompanying change and how he might best prepare his monastery to achieve
Premium Coffee
I. Introduction Trung Nguyen coffee serves as the biggest strategic business unit of the entire coffee market. There are other known coffee companies under the enterprise including Dick smith and Murphy. The Trung Nguyen coffee brand is young compared to the enterprise because it came into being in the recent years but the entire enterprise established in the year in the early 90’s. Trung Nguyen coffee brand is international and it has big stores in New Zealand and Australia and each branch containing
Premium Strategic management Starbucks Strategic planning
The Boeing Company operates in the industry of aerospace and defense. The largest aerospace company‚ Boeing is the #2 maker of large commercial jets (behind rival Airbus) and the #2 defense contractor behind Lockheed Martin. The aerospace and defense industry did suffer the effects of a post-9/11 society. Because of the weakened and fearful tourism market‚ spending on commercial aircraft did decrease. But recently‚ revenues have improved considerably as travelers are becoming more comfortable with
Premium Boeing
Tea and Coffee are the favourite drink in India especially tea. A quiet cafe revolution is sweeping urban India with the explosion of coffee bars. That is bad news for tea - still the favourite brew for a majority of Indians -‚ which has been losing out to coffee in recent years. India is one of the world ’s largest exporters of tea and one of its biggest consumers. However‚ it is coffee drinking which is increasingly becoming a statement of young and upwardly mobile Indians. Moreover‚ coffee bars
Premium Coffee Retailing