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Profitability ratios
The primary objective of a business under taking is to earn profits. Profit earning is considered necessary for the survival of the business. A business requires profit not only for its existence but also for diversification and expansion. Profits are thus a useful measure of overall efficiency of a business. profits to the management are the test of effectiveness and a measurement of control: to owners a measure of worth of their investment a measure of tax paying capacity and the basis of legislative action to customers source of finance for growth and existence and finally to the country profits are an index of economic progress profitability ratios are calculation to measure the overall efficiency of the business.
What is Costco''s Financial decisions, Centralized or decentralized?
chapter 5 solution
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Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share.
After determining the amount of working capital as in above, a specific amount say 5 percent or 10 percent may be added to cover contingencies. This is to be noted that facts depen
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