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 is Networth? Networth is the complete resources without complete obligations of an organization. Networth means equity and it is the present resources without present oblig

How we can findout phase angle from oscilloscope?

A body, with a volume of 2m^3, weights 40 kN. Determine its weight when submerged in liquid with S= 1.59.

Electronics Engineering Assignment# Solve problems using DC electrical principles 1.3 A 220 F capacitor is required to store 11mJ of energy. What voltage needs to appear

Blow Holes                    (i) Excessive moisture in the moulding sand.                   (ii) Low permeability and excessive fine grain sands.                   (iii

Here, it is assumed that the crack is effectively longer than the value measured on the side of the specimen. If one assumes that it is longer by an amount Δ, then the new crack le

An axial-flow air compressor consists of 10 rotor/stator stages each built from p gblades of identical cross-section and designed such that the axial velocity is constant throughou

how to work ever moll models

I have to develop a program for car parking control system program on assembly language using AT89C51,please help me with it

Numerical solutions to equations: Many practical problems in engineering involve complex boundary conditions and variable properties that cannot be solved analytically, creat