Solvency ratios and profitability ratios, finance, Other Engineering

Solvency ratios and profitability ratios, finance, Other Engineering

Assignment Help:

Solvency Ratios:
Profitability Ratios: The profitability ratios determine the capacity of the company to generate the profits with the amount of shareholders investment. Again higher the ratios better the performance of the company.
Gross Profit margin ratio has also increase by 11.6% showing the good ability of the company to generate revenue on its cost of goods sold.
The operating ratio indicates the extent of sales that is absorbed by the cost of goods sold and operating expenses. Lower the ratio the better it is since it leaves higher profit margin on sales.
Solvency Ratios: Leverage ratios are used to determine the financial ability of the company to meet its financial obligations. The ratio also gives the idea of the method of financing adopted by the company.
The debt equity ratio of the company is 4.71 and the competitor’s debt equity ratio is 3.76 which are negative sign as higher the ratio better the trust of the investors on the competitor’s company. A higher ratio shakes the trust of the investors of the company. A lower ratio ensures financial flexibility of the firm.

Related Discussions:- Solvency ratios and profitability ratios, finance

Details of construction , type of stairs

type of stairs

Find voltage gain of junction field effect transistt, find voltage gain of ...

find voltage gain of junction field effect transistor

Fundamentals of financial management, 4-7 DuPont and Net Income Ebersoll Mi...

4-7 DuPont and Net Income Ebersoll Mining has $6 million in sales, its ROE is 12%, and its total assets turnover is 3.2x. The company is 50% equity financed, and it has no preferr

Principles of sprinkler systems-fire safety engineering, Principles of Spri...

Principles of Sprinkler Systems-Fire safety Engineering Sprinkler systems may be installed in a building to achieve a number of different objectives. Very often the primary r

Building economics, with sketches,describe single upper flows

with sketches,describe single upper flows

Accounting rate of return method, Accounting rate of return method ARR met...

Accounting rate of return method ARR method is also known as ‘Return on Investment Method’. Here accounting information as shown in the financial statement is the basis for measu

Cathode ray oscilloscope, different type of cro probes?

different type of cro probes?

Crystallographic notation, Q. W hat do you understand by crystallographic n...

Q. W hat do you understand by crystallographic notation of atomic planes/Explain with the help of examples. Ans.Crystallographic Notation 1. Crystal Symmetry:

Industrial buildings inspections-fire protection engineering, Industrial Bu...

Industrial Buildings Inspections: Fire safety within industrial buildings falls largely within the scope of more general precautions and recommendations given in Chapter of NF

Automatic interior car lights control, hi there, i need to know if its poss...

hi there, i need to know if its possible to create a circuit of automatic interior car lights control

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

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