What are the ratio trends, Accounting Basics

Profitability refers to a company's ability to obtain  profits and positive cash flows and to its ability to obtain an adequate return on invested capital or a company's ability to give an adequate return relative to resources devoted to company operations. It is the key to a company's long- run survival. Performance and profitability of a company often are evaluated using the financial information given by a firm's annual report in comparison with other firms in the similar industry. Ratios are useful in this assessment.

Required:

1. Show the incomes - gross, operating, and net - and measure their margin ratios for your company for the last three years.

2. What do your calculations indicate about the firm? What are the ratio trends?

3. Calculate the return on assets, return on equity, cash return on assets, cash flow margin, book value per common share, and effective tax rate for your company for the last three years.

 

Posted Date: 3/19/2013 7:01:17 AM | Location : United States







Related Discussions:- What are the ratio trends, Assignment Help, Ask Question on What are the ratio trends, Get Answer, Expert's Help, What are the ratio trends Discussions

Write discussion on What are the ratio trends
Your posts are moderated
Related Questions
Q. Relevance information to financial reporting? To have relevance information should be pertinent to or affect a decision. The information should make a difference to someone

Q. Can you explain about Liabilities? Liabilities -- amounts owed by a company to others. Current liabilities are those amounts duewithin one year or less and generally include

How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.

is money deposited to the municipality for electricity current assets

Treasurer: He is the custodian arid manager of each cash and near-cash resources of the firm. The treasurer arranges credit reviews and sets policy for collecting receivables as d

A company absorbs overheads on machine hours that are budgeted at 11,250. The budgeted overhead is $281 250.  Results illustrate actual hours of 10 980 and overhead of $276 652.

Explain any two concepts of accounting with examples

Perpetual and Periodic inventory                                                                             a)  Describe the difference between the perpetual inventory method

Q. Sales returns affect both revenues and cost of good? When a company sells merchandise to customers then it transfers the cost of the merchandise from an asset account that i

What is uses of Purchases journal Purchases journal (SPECIAL JOURNAL) Used to record only credit purchases of merchandise-may be only one column which is posted to two accou