Describe potential limitations of ratio analysis

Assignment Help Business Management
Reference no: EM13686714

Explain the questions please.
Describe potential limitations of ratio analysis.
Analyse the types of market research that Show-off Ltd can undertake to
support their expansion decision.
Discuss whether the present financial position of Show-off Ltd justifies
the CEO's planned expansion.
2004 2005 2006
Sales revenue $42m $62m $98m
Current ratio 1.8 2.2 2.4
Acid test ratio 1.4 1.1 0.8
ROCE 12 % 16 % 22 %
Gross profit margin 42 % 44 % 45 %
Net profit margin 11 % 9 % 8 %
Rate of stock turnover 25 times 30 times 38 times
Gearing ratio 40 % 40 % 70 %

Reference no: EM13686714

Questions Cloud

How do you think your firm can increase its market power : Some firms have a large share of the market while others are just starting. A firm can often create a brand name which gives them market power. Market power is defined as the ability to raise prices without losing all demand. How do you think your fi..
Business management essay : Business management essay
What interest rate per month are they charging : A local finance company will loan $10000 to a homeowner. It is to be repaid in 24 monthly payments of $499 each. The first payment is due 30 days after the $10000 is received. What interest rate per month are they charging?
Distinguish between the systematic and the nonsystematic : Distinguish between the systematic and the nonsystematic portions of the total risk of an asset. Explain why risk averters holding a risky security should receive an expected return above the risk free rate that is in proportion only to systema..
Describe potential limitations of ratio analysis : Describe potential limitations of ratio analysis
Everything about ibm corporation : Everything about IBM corporation.
Acceptable-affordable and efficient healthcare services : Access to health care is defined as the timely use of needed, convenient, acceptable, affordable and efficient healthcare services. How can access be improved in the U.S. health care system? Are there tradeoffs? The more original the answer the highe..
Steel grave Financing offers payday loans : Steel grave Financing offers payday loans. The firm charges a $10 interest fee for a two-week period on a $300 loan. What are the effective and nominal annual interest rates on this loan?
Perfect competition and monopolistic competition : Which of the following is a characteristic of both perfect competition and monopolistic competition?

Reviews

Write a Review

Business Management Questions & Answers

  Program evaluation model used in lack-of-safety

program evaluation model used in lack-of-safety scenariodescribe a scenario where program evaluation could be used

  Organizational change present successful and unsuccessful

organizational change present successful and unsuccessful examples of changeas sir issac newton pointed out a body in

  Discussion on business management intervention

For CBS Corporation, list three problems requiring interventions. Define the rationale and how do your personal skills and competencies compare to what is required for a successful consultant?

  Given the subsequent production plan use a-a chase

given the subsequent production plan use a-a chase production strategyb level production strategy to calculate the

  Illustrate what public service do you think it provides

Illustrate what public service do you think it provides? Should it be discontinued or changed in any way? If yes, Illustrate in what ways and explain why.

  Business side of things

Do you think it is because they lack the time or budget to go more in-depth in their review? Or is it perhaps due to a lack of experience in the particular company or industry being audited?

  Compute avon''s operation in global markets

Compute Avon's operation in global markets regarding the use of international cadre development and building company associates

  Discuss decision making models and styles

Describe a process by which a problem can be identified and described to stakeholders in a manner that is sensitive to their perspectives.

  Business communication communication and leadershipdoes a

business communication communication and leadershipdoes a managers leadership style affect his or her communication

  Should patenting genes be understood as unethicalthe full

should patenting genes be understood as unethical?the full discussion provided me for the question is issue 19 in

  Competition and collaboration) deal with each aspect

Competition and Collaboration) deal with each aspect

  Record and collate relevant data where appropriatea use

record and collate relevant data where appropriatea use appropriate research project techniques.b interpret and analyse

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd