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

Revenue Reserves - Retained Earnings, Revenue Reserves - Retained Earnings ...

Revenue Reserves - Retained Earnings These are undistributed earnings.  Those reserves are retained for the given reasons like: A. To create up for the fall in profits so a

Illustrates the roles of money, Illustrates the roles of money? Roles...

Illustrates the roles of money? Roles of Money: a. A medium of exchange An asset which individuals obtain for the intention of trading quite than for their own consump

Constant amount per share or fixed d.p.s., Constant amount per share or fix...

Constant amount per share or fixed D.P.S. 1. The DPS is fixed in total amount of irrespective of the earnings level. These generate certainty and are consequently preferred vi

I need help with tests, I need help with : an introduction to financial ma...

I need help with : an introduction to financial markets and institutions , 2 edition , brown, nesiba, burton

Growth and valuation ratio, Growth and Valuation Ratio This ratio indi...

Growth and Valuation Ratio This ratio indicates the growth potential of the firm in addition to determining the value of the firm and investment made via various investors.  T

Performance review, I am facing some problems in my assignment of Performan...

I am facing some problems in my assignment of Performance Review in finance. Can anybody suggest me the proper explanation for it?

Government budget deficit, Government Budget Deficit If the Government...

Government Budget Deficit If the Government spends much more than it gets in from tax revenue, it runs a budget deficit. This deficit should be covered or financed either via

Financial analysis, Bell is considering two marketing options for the Canad...

Bell is considering two marketing options for the Canadian launch of their internet-based video streaming service in the first quarter of 2012.   i. A  "soft" launch using prima

Corporate finance, I need report on Corporate Finance. Do you provide help ...

I need report on Corporate Finance. Do you provide help in topic Corporate Finance? I need expert's assistance to solve my college assignment. Please suggest if it works for me.

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