NPV = PV of future cash flows less Cost of the investment PVI or Benefit Cost Ratio = PV (Future Cash Flows) / PV (Capital Outlay) Variance/CAPM Expected return E(R) = [(Pi) (Ri)] or E(R) = [(R)]/n Variance VAR 2 = [(Pi) (Ri- E(R))2] Standard Deviation SD = 2 Expected Return on a portfolio E(R) p = [Wi E(R) I] Beta A = COV (RARM) / M2 Capital Asset Pricing Model E(R) A = Rf + A (RM-Rf)
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1996 1997 Liquid Ratio = Liquid Assets / Current Liabilities(50000-16000)/20000= 1:1.7 | Liquid Ratio = Liquid Assets / Current Liabilities(60000-30000)/26000= 1:1.15 | Current Ratio = Current Assets / Current Liabilities50000/20000= 1:2.5 | Current Ratio = Current Assets / Current Liabilities60000/26000= 1:2.31 | Debt ratio = Total debt/Total assets20000/80000*100= 25 % | Debt ratio = Total debt/Total assets46000/120000*100= 38.3 % | Net Profit Ratio = (Net profit / Net sales) ×
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University School of Business Date: 02/04/2012 Table of Contents Serial | Topic | Page no. | 1 | Executive Summary | 3 | 2 | Introduction | 4 | 3 | Common Size Statements & Pro forma Income Statement and Balance Sheet | 5 | 4 | Ratio Analysis | 11 | 5 | Risk Analysis | 24 | 6 | Market Analysis | 24 | 7 | Optimum Capital Structure | 26 | 8 | Intrinsic Value of Stock Price | 26 | 9 | Dividend Policy | 27 | 10 | References | 27 | 11 | Appendix | 28 | Executive Summary
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statement commenting on the company’s estimated future position. In this paper, both a quantitative and qualitative analysis will be conducted in order to explain the importance, use, and limitations of financial statements and how profitability ratios play a significant part in the formation of the data presented to shareholders. There will be also recommendations to aid Sun Microsystem in finding and responding to company strengths and weaknesses. The recommendations offered will be presented
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Transmittal 30th November 2015 Assistant Professor of Finance Subject: Term paper on Financial Ratios Analysis of ACI Ltd. Dear Sir, We would like to thank you for giving me the opportunity of doing this assignment on this subject to prepare term paper . This task has been given us the opportunity to explore one of the most important aspect of ACI Ltd which is known as “Financial Ratios Analysis of ACI Ltd”. The term paper contains a comprehensive study on financial aspects of ACI Ltd
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Ratio Analysis: * Profitability * Return on capital employed = OP/Net Asset Indicates the business earns on its capital. Key question: could the capital be used anywhere else to gain a better return? * Gross profit = gross profit/revenue Gross profit = revenue – cost of sale Indicates company direct return * Net profit = net profit before tax/revenue Profit takes administrative and distribution expenses into account * Efficiency * Trade receivables collection
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Ratio Analysis of Dutch-Bangla Bank Ltd Ratio analysis is a tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. There are many ratios that can be calculated from the financial statements pertaining to a company's performance, activity, financing and liquidity
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Profitability Ratio: Profitability ratios measure the overall performance of the firm by determining the effectiveness of the firm in generating profit, and are calculated by establishing relationship between profit figures on the one hand, and sales and assets on the other. Return on Total Assets: This is measure of profitability from a given level of investments. It is an excellent indicator of overall performance of a company. It is also called return on capital employed or return on investment
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of Toromont’s’ economic status. The existing financial report for 2011 contains an income statement, balance sheet, and a statement of cash flows as well as other consolidated documents. The balance sheet contains a list of all current and total assets and liabilities with also a list of stockholders equity. The income statement lists all revenue, operating income, earnings (losses), continuing and discontinuing operations. Operating, investing, and financing activities are listed on the statement
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Cash flow from assets (-ve expansion) = Cash flow to bondholders (-ve borrowing)+ Cash flow to shareholders (-ve borrowing) 2 Cash flow from assets (CFFA) or Free cash flow (FCF) =operating cash flow-net capital spending-additions to net working capital Operating cash flow = EBIT+D-T=NI+D+I Net capital spending = Ending NFA-Beginning NFA+D also NCS=Fixed assets bought-fixed assets sold Additions to NWC = Ending NWC-Beginning NWC Cash flow to shareholders = dividend paid-net new equity= dividend
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