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
Standard cost of the product

procedure to assemble the spindle in the cnc mzachine.........

Fire prevention – bays or zones: To prevent the spread of a fire within an aircraft/engine nacelle, it is divided up into sections or zones, each being separated by a fireproof



Students are to undertake a tunnel blast design for the following conditions: • Tunnel is 5.5m wide by 5.5.m high • Rock is a granite with a UCS of 300 MPa • Drill hole diameter is

Variable magnetic coupling transducers A transducer of this type relies on variable coupling between magnetic coils. An example is a Linear Variable Differential Transformer (L

Q.   Define the crystal symmetry with reference to crystal structure. Ans.CRYSTAL SYMMETRY: A crystal is an orderly array of atoms in space. Atoms organize themselves in an

1. Briefly explain how to conduct a market segmentation analysis for an organization. Answer: There are a number of ways by which the market segmentation analysis of an organizatio

What''s the principles of surveying?