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
what are the most short forms given to materials in plumbing

What is the difference between real money & nominal money? 1) Nominal cash is related to the measure of counting. Moderate figure is what is written on the bill. Whereas actual

easy defination of zener diode nd its application and characteristics ?

Double Cantilever Beam In the double cantilever configuration, the ends of the sample are pulled apart, forcing a crack to propagate down the beam from one end. The figure belo

The module content and teaching style has undergone revision since 2006-07. There are two reasons for this. First, this was the first year that Prof Badcock was responsible for the


Expertsmind.com offers  Cell Arrays matlab assignment help In matlab, Cell arrays are just like frequent arrays in that they are "indexed" details of information, with an out

Rajender Kumar was a production worker at competent Motors Limited (CML) which made components and accessories for the automotive industry. He had worked at CML for almost seven ye

Linear lateral dynamics The second order (two degree of freedom) Dutch-Roll approximation is an approximation to the abovefourth order system for the Dutch Roll dynamics. A jus

i need somone to design a pavilion for me