Financial ratio analysis A reading prepared by Pamela Peterson Drake OUTLINE 1. 2. 3. 4. 5. 1. Introduction Liquidity ratios Profitability ratios and activity ratios Financial leverage ratios Shareholder ratios Introduction As a manager‚ you may want to reward employees based on their performance. How do you know how well they have done? How can you determine what departments or divisions have performed well? As a lender‚ how do decide the borrower will be able to pay back as promised? As a
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What Are the Motives Behind Corporate Restructuring? Like a person turning over a new leaf and making a fresh start‚ corporations try to gain a second wind by restructuring. Whether the restructuring takes the form of splitting up a company‚ merging it with another company‚ reorganizing‚ or even taking on a new name‚ the goal is to end up with a more refined‚ more profitable entity. Both successful and failing companies may turn to restructuring to breathe fresh life and fresh profits into the business
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reported on the financial statements. 1) Return on Equity: One of the most important profitability ratios is return on equity (ROE). ROE is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested. The return on equity ratio is computed as follows: Return on Equity = | Net Income | | Average Shareholder’s Equity | Simply
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Alternative Fuels People in America do not realize the fact that driving their vehicle is one of the regular activities that they do that has one of the largest impacts on the earth. With more and more cars in use each day‚ the more fossil fuels are called for. Fossil fuels are natural fuels that were formed from the remains of living organisms. These fossil fuels typically take millions of years to be formed. Since most fossil fuels are being imported due to it taking a huge amount of time
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Government Grants for Alternative Energy Research Jon Smith ENG 122 (ABE1135R) Mrs. Jane Smith 8 October 2010 Government Grants for Alternative Energy Research Energy sources play a crucial role‚ affecting just about every activity that societies do in every country around the globe. The role in the economic development of a region or country does not need emphasis; because of the greater effects‚ it exercises a huge influence. It is the
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Angel Terry The Meaning of Digital Firm Business Communications 204 The meaning of Digital Firm is nearly all of the organization’s significant business relationships with customers‚ suppliers‚ and employees are digitally enabled and mediated” (Laudon‚ p. 11). This is the meaning of digital firm in which it was given in our text book. This however‚ is not how I comprehend the definition of Digital Firm. I comprehend it in another way in which several other people may or may not
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Contents page Introduction……………………page1 Literature review………………page 2 Uses of ratios…………………...Page 2 Types of financial ratios………Page 3 ➢ Profitability ratios……….Page 3 ➢ Efficiency Ratios………....Page 4 ➢ Liquidity Ratios………….Page 5 ➢ Investment Ratios………..Page 6 Limitations of ratios…………..Page 8 Conclusion……………………..Page 8 Introduction. The primary purpose of accounting is to convey information about the business to management‚ investors‚ shareholders‚ government
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Name___________________________________ Biology 2401 Quiz Fundamentals of the Nervous System Ch 11 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is the role of acetylcholinesterase? A) amplify or enhance the effect of ACh B) destroy ACh a brief period after its release by the axon endings C) act as a transmitting agent D) stimulate the production of serotonin 1) 2) The term central nervous system refers to the ________
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corn snacks‚ green pea snacks‚ rice crackers‚ cheese snacks‚ cuttlefish flavoured snacks‚ and onion rings. The company exported those products to many Middle East countries and European countries. RATIO ANALYSIS LIQUID RATIO Liquidity means that the amount of money available to the company to pay off its short term debts. The higher liquidity ratio is
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Prometheus says that "to be free‚ a man must be free of his brothers." By reference to the story‚ explain what Prometheus means by freedom and why he values it. In what significant ways is freedom non-existent in the society from which he escapes and what are the consequences of that lack of freedom? In Ayn Rand’s Anthem‚ Prometheus says that "to be free‚ a man must be free of his brothers." Freedom is a concept totally forbidden in the society in Anthem. Prometheus is given consequences for
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