RATIO ANALYSIS OF CIPLA LIMITED FOR THE YEARS 2007 TO 2011 * RETURN ON ASSETS: This ratio is decreasing from 2007 to 2009 and increased in 2010 because total assets are increasing faster than profit after tax. * RETURN ON INVERSTED CAPITAL RATIO: This ratio is showing decreasing trend. As reserves, shareholder’s fund and long term liability are denominator which is increasing faster than numerator i.e. profit after tax. Company is not shareholder friendly as it reserves surplus more.
Words: 2499 - Pages: 10
Current Financial Health Profitability Tire City has shown strong sales growth from 1993-1995. Sales increased 25.42% in 1994, and 15.48% in 1995 respectively. They have improved their profit margin in every year, 1993 had a profit margin of 4.81%, 1994 4.90%, while 1995 has improved to 5.06%. Contributing to this improving margin was a decrease in Cost of Goods Sold as a % of sales, and interest expense as a % of sales. Tire City’s gross profit margin has improved slightly through the years
Words: 1781 - Pages: 8
BUSINESS FINANCIAL RATIOS AND FORMULAS Liquidity Ratios Current Ratio = Current Assets Current Liabilities This measures the ability of the firm to maintain solvency over the short run. Current means "less than 1 year". Quick Ratio = Current Assets - Inventories Current Liabilities Leverage Ratios Debt Ratio = Total Debt Total Assets This measures the extent the firm uses debt to finance asset acquisitions. Debt to tangible net worth
Words: 1502 - Pages: 7
market. Doing our analysis of Wal-Mart Stores, Inc., we gathered our information and different figures from the Hoover’s online through the Willis library’s website, Reuters.com, and Morningstar.com databases which gave us insight to several financial aspects of the firm, including its stock, cash flows, risk, dividends, sales, earnings, debt, and overall performance. II. Business Analysis Profile of the company “If we work together, we’ll lower the cost of living for everyone…we’ll give
Words: 5767 - Pages: 24
Financial ratio analysis on Apex Adelchi Footwear Limited and Bata Shoe Company (Bangladesh) Limited Letter of Transmittal 14th March, 2 Dear respected Madam, We are really thrilled to submit the Report on Financial Ratios analysis of Apex Adelchi Footwear limited and Bata Bangladesh Limited. Our analysis was on Fiscal Yearly 2009, 2010, 2011. This report includes the financial ratios, Calculation, Statement Figure of two companies. Your directions have been firmly followed by us
Words: 4581 - Pages: 19
organizations which are listed in stock market. This analysis helps us to have better understand about the companies and about their financial condition which as well as gives us better knowledge about the course Corporate Finance. 1.2. Background and relevance of the research: Here we have worked one the seven different top business organization and make a comparative financial analysis of those business firms as a course work of “Corporate Finance”. Through the research we have found a better knowledge
Words: 15612 - Pages: 63
FIN 316 Ch. 1: Corporate Finance and the Financial Manager Types of firm * Sole proprietorship * Straightforward to set up * No separation between the firm and the owner; the firm can have only one owner who runs the business * Owner has unlimited personal liability for the firm’s debts * Limited to the life of the owner * Partnership * All partners are liable for the firm’s debt * Ends in the event of the death or withdrawal of any single partner * Limited
Words: 2385 - Pages: 10
Graeme Rankine Financial Statement Analysis— Identify the Industry Since opportunities and constraints tend to be different across industries, companies in different industries tend to make different investment, dividend, and financing decisions. Thus, firms in different industries exhibit different financial characteristics, and, hence, report different financial ratios. For example, “old economy” businesses with large amounts of tangible assets may have higher leverage ratios. Service or trading
Words: 2512 - Pages: 11
Definition Paper Business operations uses a lot of ratios for company profitability. The profitability ratios estimate the company’s level of profitability by analyzing company sales and profit percentage of varieties of ratios. Return on Equity: (ROE) This ratio calculates the company’s financing return on the portion that is offered by owners. ROE is calculated has net income divided by owners’ equity. Return on Sales (ROS). This ratio can also be referred to as the profit margin; Return on
Words: 258 - Pages: 2
and recommended strategy (TOWS) Implementation of recommended strategy Conclusions Evaluating mission statements Evaluating the Board of Directors Preparing the tables: EFAS, IFAS, SFAS, and TOWS Common-size statements Analyzing financial statements Analyzing financial ratios Writing guidelines Relaxed APA rules Useful resources Purpose of the strategic audit assignment A strategic audit is usually done to help the firm’s management decide how to proceed, or to support a potential investment or
Words: 8981 - Pages: 36
