...A Summary of Key Financial Ratios How They Are Calculated and What They Show Profitability Ratios 1. Gross profit margin Sales - Cost of goods sold Sales An indication of the total margin available to cover operating expenses and yield a profit. 2. Operating profit margin (or Return on Sales) Profits before taxes and interest Sales An indication of the firm's profitability from current operations without regard to the interest charges accruing from the capital structure 3. Net profit margin (or net Return on sales) Profits after taxes Sales Shows after tax profits per dollar of sales. Subpar profit margins indicate that the firm's sales prices are relatively low or that costs are relatively high, or both. 4. Return on total Assets Profits after taxes Total assets or Profits after taxes + interest Total assets A measure of the return on total investment the enterprise. It is sometimes desirable to add interest to after tax profits to form the numerator of the ratio since total assets are financed by creditors as well as by stockholders; hence, it is accurate to measure the productivity of assets by the returns provided to both classes of investors. 5. Return on stockholder's equity (or return on net worth) Profits after taxes Total stockholders' equity A measure of the rate of return on stockholders' investment in the enterprise. 6. Return on common equity (Profits after taxes -Preferred stock dividends) (Total stockholders" equity - Par value of preferred stock) ...
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...Accounting Assignment – Financial Analysis Name：China Medicine Corp. Content I. Company Overview 2 II. Securities Details 5 III. Financial Analysis 8 IV. Corporate Governance 12 V. References 18 Group: Group Member: Company Overview |Business Description: | |(Please provide underwriting analysis of business operations, existing product portfolio, services, etc.) | |The company is a distributor of pharmaceutical and medical products in the People's Republic of China (PRC), including prescription and | |over-the-counter drugs, Chinese herbs, traditional Chinese medicines made from Chinese herbs, nutritional supplements, dietary | |supplements, and medical instruments. The Company is also engaged in research and development with the aim of creating new pharmaceutical| |products and intellectual property that it may sell in the future. | |Strategy, Market and Dependencies: | |(Please provide analysis of the Company’s strategy strengths and weaknesses - business model, market share, and competition. What were | |the...
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...------------------------------------------------- A Report On Comparative Performance Study of Conventional and Islamic Banking in Bangladesh Course Title: THEORY AND PRACTICES OF BANKING IN BANGLADESH Course Code: FBK 312 Submitted To: Md. Nur Nabi Assistant Professor Department of Finance and Banking Faculty of Business Administration and Management Patuakhali Science and Technology University Dumki, Patuakhali- 8602 Submitted by: Group: C (Level: 3, Semester: I) Session: 2012-2013 Faculty of Business Administration and Management Patuakhali Science and Technology University Dumki, Patuakhali- 8602 Date of Submission: 09th May 2015 ------------------------------------------------- Roll No | Registration No | Name of the Students | Signature | 1203051 | 03596 | Nusrat Jahan Rupa | | 1203053 | 03598 | Nusrat Yesmin | | 1203054 | 03599 | Nisath Salsabil Urmi | | 1203056 | 03601 | Mehedi Hasan | | 1203057 | 03602 | Hasan Shahria Nayeem | | 1203060 | 03605 | Khondokar Tanveer Ahsan | | 1203061 | 03606 | Sume Akter | | 1203062 | 03607 | Rased Amer Sohag | | 1203065 | 03610 | Nusrat Jahan Pinki | | 1203067 | 03612 | Rasel Miah | | ------------------------------------------------- Group Member Details ------------------------------------------------- ------------------------------------------------- ATTENDANCE REPORT 1) Level : 3 2) Semester : I 3) Course Code : FBK-312 4) Course Title : THEORY AND PRACTICES...
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...EXAM 2 – PAPER – FINANCE For Exam 2 paper you will be developing two infographics based on the company you wrote about in your first paper. You will make 2 infographics, write one executive, and include reference page Infographic one: Financial statement analysis Do one vertical and one horizontal analysis. Do all the ratio analysis discussed in class. Infographic two: Analyzing the company stock: You are to analyze the stock. Use the following website to help you: http://www.nasdaq.com/investing/dozen/ Executive summary You are to write a one and a half to two page executive summary regarding what you presented in the two infographics. You are to address it to the CFO of the organization you are analyzing. The executive summary does NOT include references and citations within the executive summary but you will have it on a separate page. Your references should have the book and at least one peer-reviewed journal. You should describe the information presented (do not list the numbers = such as the current ratio is 1.20). You should focus on ratio groups (liquidity vs. current) and then highlight particular ratios within the groups that are problematic or areas they are doing well in. The next part of the executive summary should be about the stock. Use the stock market game to help you compare and contract the company stock to other stock Examples of infographics are: https://www.google.com/search?q=INFOGRAPHIC+EXAMPLES+FINANCE&espv=2&biw=192...
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...BBA 14th Batch Fundamentals of Business Finance Course Code B 201 Department of Banking University of Dhaka [pic] [pic] Prepared for Mrs. Hasina Sheykh Associate Professor Department of Banking (DU) Prepared by [pic] |ID NO |Name | |059 |Farhanaz Luna (Leader) | |091 |Nesat Santa Rahman | |099 |Shaharin sultana | |006 |Zarin Tasnim | |102 |Humaira Sadia | |008 |Sajia Akter Moury | [pic] To Mrs Hasina Sheykh Associate Professor Dept. of Banking University of Dhaka Sub: Submission of Term Paper Dear Sir, It is our pleasure to submit term paper on Assessing financial health of banks in Bangladesh: A case of “Dutch Bangla Bank Limited” as a part of our B.B.A. Program. We tried our best to gather relevant...
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...A Report on Ratio Analysis of BRAC Bank 1.0 Introduction 1.1 Origin of the Report To be an efficient business executive, a student of business study must have practical knowledge about the financial activities of any business organization. Financial Management (FIN 301) course is giving the theoretical knowledge of financial management activities but only theoretical knowledge cannot make students efficient. Ms. Nasreen Sultana, course instructor for this course gave an assignment on 28 November, to write a business report on ratio analysis of BRAC bank as a part of the study of this course. 1.2 Purpose of the Report Purpose of the report is to know financial performance of BRAC bank. This report will help to gather knowledge about financial performance of the bank and the improvement and decline in performance compared to the previous year. 1.3 Scope of the Report This report has been prepared only covering financial area of the bank with giving emphasize on ratio analysis taking data from annual report of the bank. 1.4 Methodology: For preparing this report, information has been mainly collected from the annual report of the BRAC bank and the bank's website. The various ratio analysis are used in the report, which were collected from the annual reports, and financial statements and the ratios that are not found in the annual report directly are calculated from the information provided in the annual reports. Ten ratios have been selected to judge the various...
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...The Financial Detective Friday, April 17, 2009 Health products On the basis of trade receivables , inventories, fixed assets, payables , income and the ratio of inventory turns , it seems that Company A is more important than company B. Company A received so little a budget for research and development more important. Company B would be another commercial basis by a diverse mass production sold in supermarkets . First on trade receivables , we see that Company A owns a third more than Company B ( 12% A and 8% B). This difference can be explained by the fact that pharmaceutical products are sold in supermarkets B . However , in the vast majority of distribution a customer pay in cash, but the problem and whether supermarkets quickly reverse the revenue to the company B. The rotation of customer receivables , confirmed that company A has time shorter than company B. payment We note with income statements of the two companies , that B has less stock that Company A ( 7% A and 5% B). This suggests that company B test up to approach the "zero stock " and that it therefore work just in time to optimize its performance more than Company A. Although the difference is that here two points. These are businesses large inventory change. Payables of Company A are more important than company B ( 9% A and 2% B). This difference may result in a different production. Indeed the company A which favors the search for new products to appeal to different components constantly and...
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...Walmart SWOT Analysis Strengths Scale of operations. Walmart is the largest retailer in the world with more than $400 billion in revenue and 10,130 stores. It makes Walmart the giant that no other retailer can match. Due to such large scale of operations, the corporate can exercise strong buyer power on suppliers to reduce the prices. It can also achieve higher economies of scale than competitors because of its size. Higher economies of scale results in lower prices that are passed to consumers. Competence in information systems. The corporate achieves significant cost savings because of its extensive information systems that tracks orders, inventory levels, sales and other related information in real time. All this information can be instantly accessed, analyzed and decisions made at each store. Effective management of supply chain and logistics is one of the most important factors for Walmart success. Wide range of products. Walmart can offer wider range of products than any other retailer. It sells grocery, entertainment, health and wellness, apparel and home related products among many other categories and offers both branded and own label goods. Wide range of products attracts more customers to Walmart stores. Cost leadership strategy. This strategy has helped Walmart to become the low cost leader in the retail market. This strategy requires selling products ant the lowest price possible and providing a no frill services to achieve higher economies of scale and attract...
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...Adelphia Communications Corporation Credit Analysis ______________________________________________________________________________ Overview We have performed a credit analysis on Adelphia Communications Corporation using information provided for the years 1992-1996. We compared Adelphia’s company practices to standard industry practices; evaluated its ability to repay debt; looked at Adelphia’s competitive position in the telecommunication industry; and evaluated its business strategy to grow and remain competitive within the industry. We based our analysis and recommendations on key business risk issues as discussed in the following: a) business risks of the company and the industry; b) possible warning signs of trouble at Adelphia; c) assessment of the company’s financial capability to cover operating and debt obligations; and d) appropriateness of Adelphia’s financial strategy in correlation with the overall industry. Finally, we gave recommendations for Adelphia to consider in the event the company does not obtain the new bank loan. Adelphia and the Industry The industry is highly competitive and capital intensive. Growth is necessary to remain competitive. This requires upgrades of cable systems and expansion of services, such as internet and phone services. By acquiring existing cable networks, companies in the industry are able to forego some of the initial expense associated with expansion. Adelphia’s growth strategy primarily focuses on acquisition rather than...
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...CASE STUDY: The first contract will be held between Agro developer and reward seeker and this contract will be a mudarabah contract. In this contract reward seeker will provide capital and agro developer will work as mudarib. This is an unrestricted mudarabah because reward seeker is only interested in reward whether the mudarib can invest the finance in any business. Firstly agro developer and reward seeker sign MOU. [pic] Contents of Mudarabah Contract: • This is unrestricted mudarabah. • This is short term mudarabah and mudarabah will be liquidated at the end. • Profit ratio will be 70% & 30% after excluding all expense (compensation of loss if any) • Mudarib as agro Developer will give access to your A/C • Reward Seeker is providing Rs five (5) lakh • Mudarabah contract is signed at the date of 01-01-2011 Now the Agro developer is doing another contract with the former to utilize the mudarabah capital. Agro developer enter in the salam contract with former at the date of 03-01-2011. Agro developer has verified that the former have 2 jareeb of land and he has no money to caltivate the land wit a potato. The average production of one jareeb is _________ ton and the average price of potato at the time is Rs 10 /kg. The agro developer has to provide a seeds and fertilize. The type of seeds for potato is ronaldo which give better average production. The price of ronaldo is Rs ________ per 50kg and the demand...
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...CHINA DOLLS Overview Haute Couture Fashions Sdn Bhd need to adjust their business strategy, as China textile industry becoming a potential threat to it as its two major customers are now thinking of outsourcing to China for its lower operating cost. The management need to decide whether to move its operation to China or exit from contract manufacturing activity and stand on its own new created brand. It is recommended for Haute Couture Fashions Sdn Bhd to move their operations wholly by itself to China and halt their current local operations, to secure its existing customers, and attract new potential customer in the long run. Although it might seems as a big investment in the short term, but in the long term period, Haute Couture Fashions would enjoy the profit made by this big investment of today. Problems The management of Haute couture Fashions Sdn Bhd needs to make quick adjustment to their existing business strategy due to the emergence market of China in the textile industry. Many of the manufacturers from European and American market are changing their contract manufacturer to China due to its potential low operating cost. In the short term period, Haute Couture Fashions Sdn Bhd, HCF might lose its two major clients, which made up 44.2% of its sales annually. On the other hand, if no changes being implemented, in the long run, HCF might suffer even more, when all of its clients follow those steps, outsourcing to China. Potential alternative decision to be made by HCF...
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...Ratio, Vertical, and Horizontal Analysis Check Point Brandy McDonald Principles of Accounting February 24, 2012 Vaunda Davis Ratio, Vertical, and Horizontal Analysis Check Point The three vital tools of financial statements are the ratio, vertical, and horizontal analysis. Each financial statement examines the data within monetary statements of businesses or organizations. Being able to determine the financial stability of a company is important in addressing any areas of weakness or aide in the decision making processes. Ratio analysis is associated with evaluating the liquidity, profitability, and solvency of a corporation to judge performance scenarios. Vertical analysis gauges entries for assets, liabilities, and equities in a balance sheet to compare the proportions of the total account. It enables any size of a business the opportunity to easily compare relative annual changes. Horizontal analysis allows companies to compare performance ratios over a certain period of time, usually one year’s worth of entries. It is also referred to as trend analysis and offers insight into the overall success of a company in order to make sound investments. These types of ratios are able to be used on any item of finance from revenues to earnings within a company. PepsiCo, Inc. The Current Ratio for 2005 is Current Assets 10,454/ Current Liabilities 9,406 which equals 1.11%. The Current Ratio for 2004 is Current Assets 8,639/ Current Liabilities 6,752 which equals 1.28%. ...
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...Chapter 2 USING FINANCIAL STATEMENTS AND BUDGETS © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Outline Relationship between financial plans and statements. Prepare a personal balance sheet Generate a personal income and expense statement. Develop a good record-keeping system and use ratios to evaluate personal financial statements. • Construct a cash budget and use it to monitor and control spending. • Apply time vale of money concepts to put a monetary value on financial goals. • • • • © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mapping Out Your Financial Future Financial planning facilitates: • Greater Wealth • Financial Security • Attainment of Financial Goals © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Interlocking Network of Financial Plans and Statements © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Balance Sheet A statement of your financial position at a given point in time Balance Sheet Equation Assets: Things You Own • Liquid assets – low-risk, cash or investments that can be converted to cash with little...
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...Applied Public Finance Fiscal Impact Analysis 3 - FIA 3 Assignment * Briefly describe (1-2 pages) the American Farmland Trust (AFT) Cost of Community Services methodology and illustrate the COCS approach from the Skagit County, WA case study. The American Farmland Trust Cost of Community Services methodology compares the ratio of expenditures to revenue for different land uses, which are used in municipal land-use planning. Land uses, from residential / commercial / industrial , agricultural / and open space, largely determine the different revenues and expenditures of the municipal government because they generated different amounts of revenue from being taxed at different rates. Expenditures also vary from municipal services because different services need to be provided per use like education, police protection, fire protection, roads, and other infrastructural uses. The basic methodology of CCS studies is to first partition land uses into three classes: residential, commercial / industrial, and agricultural / open-space. Expenditures and revenues from the municipal budget are then allocated to the three different land-use categories. Although the specific methodology for fiscal allocations differs among CCS studies, the final result is always a ratio of expenditures over revenues for each of the three land uses. For example, a residential ratio of 1.2 means that for every U.S.$1.00 of revenue raised from residential land uses, U.S.$1.20 of expenditures is spent...
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...Key Issues The ALPES S.A. case deals with Charles River Laboratories (CRL) and their consideration of a joint venture proposal with an animal vaccine company in Mexico. The senior V.P. is preparing to present the proposal of a $2 million investment for the firm. The CEO, Jim Foster, is concerned with the associated risks that CRL would be undertaking if they accept this venture. Key issues of concern are; the partnership with a relatively small, family run business; having operations in Mexico, which could pose difficulties; maintaining CRL’s focus on U.S. expansion; and the proposed partner’s lack of funds to invest, which will leave CRL to bear the entire cost of the venture. Internal Analysis: Business Strategy Diamond 1. Arenas Charles River Laboratories (CRL) is currently the market leader for the commercial supply and production of global laboratory animal models used in the development and testing of new pharmaceuticals, as well as discovery research. The most recent product development is that of SPF eggs, which are used in the development of human vaccines that have not yet been converted over to the newer production technology. 2. Vehicles Charles River Laboratories has two different options at this time for vehicles that will enable them to enter new arenas. These consist of entering into a joint venture, or other type of agreement, with ALPES, or making use of the SPAFAS franchises. Although the initial intention to purchase the existing franchises...
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