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
The capital structure of Wild West Inc. is as follows: -            Debts: $5,000,000 (face value) bonds with coupon rate at 8.00% and current price at par -

Q. What is periodic inventory procedure? In the periodic inventory procedure the Merchandise Inventory account is updated periodically subsequent to a physical count has been m

The owner's equity of Logan's company is equal to one quarter of the total assets. Liabilities equal $60,000. What is the amount of owner's equity?

Q. What are Service companies? Service companies carry out services for a fee. This group comprise law firms, accounting firms and dry cleaning establishments. The early sectio

Prepare the Journal Entries Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the tr

Q. Show Approximation of periodicity? Approximation and judgment because of periodicity To offer periodic financial information accountants must often estimate expected uncolle

Significance of Accounting Standards: Setting of Standards is an effort to standardize the reporting of accounting information across the country and also transversely the glob

#question.outline basic elements to keep in mind while preparing an income statement?

Full form= Winter compensation from contributions.

Q. Introduction to inventories? Subsequent to studying this chapter you should be able to - Record the journal entries for sales transactions involving merchandise. - Exp