Solvency ratios and profitability ratios, finance, Other Engineering

Solvency Ratios:
Profitability Ratios: The profitability ratios determine the capacity of the company to generate the profits with the amount of shareholders investment. Again higher the ratios better the performance of the company.
Gross Profit margin ratio has also increase by 11.6% showing the good ability of the company to generate revenue on its cost of goods sold.
The operating ratio indicates the extent of sales that is absorbed by the cost of goods sold and operating expenses. Lower the ratio the better it is since it leaves higher profit margin on sales.
Solvency Ratios: Leverage ratios are used to determine the financial ability of the company to meet its financial obligations. The ratio also gives the idea of the method of financing adopted by the company.
The debt equity ratio of the company is 4.71 and the competitor’s debt equity ratio is 3.76 which are negative sign as higher the ratio better the trust of the investors on the competitor’s company. A higher ratio shakes the trust of the investors of the company. A lower ratio ensures financial flexibility of the firm.
Posted Date: 2/7/2012 2:18:51 AM | Location : United States







Related Discussions:- Solvency ratios and profitability ratios, finance, Assignment Help, Ask Question on Solvency ratios and profitability ratios, finance, Get Answer, Expert's Help, Solvency ratios and profitability ratios, finance Discussions

Write discussion on Solvency ratios and profitability ratios, finance
Your posts are moderated
Related Questions
Prepare a list of questions that should be resolved in identifying each of the following problems: a. Develop an improved manual gearshift for a mountain bike. b. Develop a hands-f

how thermoelecteric thermometer is contructed and how it working

what is the best Master thesis that can be done in this major ?I need suggestions regards

you are a young entrepreneur & you have to compete with already established firms in the industry by taking help from marginal costing tools with adequate examples. you have to giv

We now have some idea about what models are available to simulate the flow over an aerofoil, and also how to use the Hanley package to apply these methods. Keep referring to you

Q. What is Recovery and Recrystallization? Ans. Due to the cold working of metals there arise a large number of dislocations and distortion of planes. Cold working of metals

expertsmind.com has Visualizing Data solution in matlab All the design features that are required to picture technological innovation and clinical information are available in

Describe the method of undertaking an anemometer traverse for a airflow

#questionA piece of Al weighing 6 kg and initially at a temperature of 300OC is suddenly immersed in a fluid at a temperature of 20OC. The convectice heat transfer coefficient is 5

Question #1 Which of the following statements is false? A) For corporations, interest paid on its debt is a tax deductible expense. B) For corporations, dividend paid on its