STUDY RATIO ANALYSIS ANALYSIS OF FINANCIAL STATEMENTS The traditional financial statements that comprise of the balance sheet and profit and loss account do not give enough information related to financial operations of the company. These financial statements prepared as per the statutory requirement of law need to be analyzed in order to evaluate the past performance of the company and the future prospects. The most widely used tool is Ratio Analysis. DEFINITION OF RATIO A way of expressing
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International Accounting 1. What industry is Disney in ? 2. Does Disney make money ? (IS) 3. Trend of 3 years 4. Makes Money ? YES : How much ? (IS) – Gross Margin and Net Income Margin – Ratio Analysis 5. Liquidity (Cashflow/BS) 6. How is Disney doing compare to competitors ? 7. ROE and ROA (IS/BS) 8. Future Prospects 9. Pricing Strategy 10. Marketing Strategy I. Return on Investment Return on Equity (ROE):
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Profitability Ratios Profitability Ratios attempt to measure the firm’s success in generating income. These ratios reflect the combined effects of the firm’s asset and debt management. Profit Margin The Profit Margin indicates the dollars in income that the firm earns on each dollar of sales. This ratio is calculated by dividing Net Income by Sales. Return on Assets (ROA) and Return on Equity (ROE) The Return on Assets Ratio indicates the dollars in income earned by the firm on its assets
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Morrison vs Sainsbury 2011-2012 | Annual Report - Financial Analysis | 2011-2012 | | Subject : Financial Analysis For Managers | 11/19/2012 | Course Leader: Prof. Richard West Module Leader: Prof. Bijan Hesnib Submitted By: Riyank Mehta - 140550891 Jay Sanghvi - 140248921 Anirudh Thakor - 140994501 Jigar Ajmera - 140249021 1. Executive Summary This report is a summary of the comparison of ratio analysis of two companies Morrisons Plc. and Sainsbury
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RATIO ANALYSIS (ALL VALUES IN Rs. MILLION) 1. GROSS PROFIT MARGIN (%): GROSS PROFIT = NET SALES – COGS = TOTAL REVENUE – (Employee Benefit Expense + Operating and Other Expenses + Finance Costs) = 53107 – (22510+21598+1025) = 7974 GROSS PROFIT MARGIN = (NET SALES – COGS)/NET SALES = (7974/ 53107)*100 = 15.01497% 2. RETURN ON ASSET(RoA) RETURN ON ASSET = (PAT/TOTAL ASSET)*100 = (4606/63454)*100 = 7.258% This indicates that around 7.3% of all assets have been utilized
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Efficiency Ratios The efficiency ratio is an indicator of how well Johnson and Johnson (J&J) is run on an organizational wide basis. Efficiency ratios are also defined as asset turnover ratios (Finkler‚ Kovner & Jones‚ 2007). The asset turnover ratio measures how productive J&J is in managing all of its assets to generate Sales. This efficiency ratio is calculated by dividing sales by total assets by total revenue. For year 2010‚ J&J had an asset turnover of 0.6. Comparing J&J’s
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METHODIST UNIVERSITY COLLEGE GHANA FACULTY OF BUSINESS ADMINISTRATION LEVEL 300 FINANCIAL ACCOUNTING IV RATIO ANALYSIS OF FML UN-AUDITED ACCOUNTS OF 2010 AND 2011 Name Index No Programme 1. Osumanu-Sulemana Amidu BBAA/ET/123001 Accounting 2. Emmanuel Addae BBAA/ET/ 117726 Accounting 3. Benedicta Mawunu
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INTERPRETATION OF FINANCIAL STATEMENTS Ways of interpreting financial statements - Using individual items contained in financial statement. - Using ratios computed from items contained in Financial Statement (Ratio analysis) Reasons for interpreting accounts Accounts have to be analyzed and interpreted for the following logical points (1) Evaluation of the trading performance of a firm in order to have a measure of the quality of management running it. (2) Appraisal and monitoring
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“A STUDY ON RATIO ANALYSIS” IN BANK OF INDIA‚SALEM A Project Report submitted to the SRM University in partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted by J.Anand (Reg.No. 3511010044) Under the guidance of Dr. T.Ramachandran School of Management SRM University Kattangulathur MAY- 2012 SRM University Kattangulathur BONAFIDE CERTIFICATE This is to certify that the Project Report entitled “Ratio analysis in
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Introduction to the companies. Cargills (Ceylon) PLC Cargills is Sri Lanka’s largest modern retailer. Its pioneer venture into modern trade was an innovation of the company’s trading legacy. Thereafter Cargills Food City continued to challenge the norm by taking to the masses what was traditionally an affluent focused business and offering ‘higher value for the lowest price’. Today the Cargills retail operation is spread across the island as ‘Cargills Food City’ supermarkets and ‘Cargills
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