Ros - return on sales-profit margin , Finance Basics

Assignment Help:

ROS - Return on Sales (Profit Margin)

1772_ROS – Return on Sales.png

The Average of the industry ROS was 5.18% for 2004, 4.41% for 2005, and 7.20% for 2006. The chart showed that ROS has been declined from 2004 to 2005, and went up from 2005 to 2006. The major company to bring down the ROS for the industry in 2005 was Lenovo. After it acquired IBM PC division, its sales went up a lot, but it did not working well on its costs. ROS dropped a lot from 4.97% to 0.17% from 2004 to 2005 after the acquisition of IBM PC division. The main reason for fast declining ROS should be suffering from interest expense after the large amount of debt raised for acquire the IBM PC division. Also, The ROS for Lenovo has been lower than industry average for every year leads us to think about the costs as major issue to deal for Lenovo. ((See exhibit ratios)


Related Discussions:- Ros - return on sales-profit margin

Origination fees, jack needs to borrow $1000 for the next year. Bank south ...

jack needs to borrow $1000 for the next year. Bank south will give him the loan at 9%. Suncoast will give him the loan at 7% with a $50 loan orgination fee. First national will giv

Cash flow statement, how to calculate cash flow? What components are requir...

how to calculate cash flow? What components are required to calculate it ?

Example of asset based valuation, Example of Asset Based Valuation Ext...

Example of Asset Based Valuation Extracted information from the books of Kent Limited.   Current liabilities Bank overdraft    Sh. 300,000

Short term fianacing, discuss the three approaches to the short -term finan...

discuss the three approaches to the short -term financing problem and provide relevant examples of each.

Management of account receivable, Management of Account Receivable In ...

Management of Account Receivable In order to keep current customers and attract new ones, most firms find it necessary to offer credit. Accounts receivable represents the exte

Interest rates, why borrow from a country with a high interest rate instead...

why borrow from a country with a high interest rate instead of a country with a low interest rate

Working capital, #question.component.of working capital

#question.component.of working capital

THE CASE OF THE MISSING BONDS RATING, Three of these companies have bonds t...

Three of these companies have bonds that carry investment - grade ratings. The other 3 companies carry junk - bond ratings. Judging by the information in the table, which 3 compani

Interpolation method, Interpolation method Consequently, r denote...

Interpolation method Consequently, r denotes required rate of return Consequently, r = 14 percent + (15 percent - 14 percent) x 253 .646 /253 .646 + 5.375

Tracking order, when will I receive my order and how will I receive it?

when will I receive my order and how will I receive it?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd