Essay about A Good Business

Return on equity tells you how effectively a company is using the dollars invested in it by stockholders. ROE is the most often quoted single statistic when describing a firm 's performance. It is also one of the statistics considered to be most useful by stockholders.

The provision and use of personal protective equipment could include using gloves, glasses, earmuffs, aprons, safety footwear, dust masks.

Rate of return on total assets: This ratio compares the operating income against the total net assets. This can show how effective the company is in utilizing its assets prior to paying taxes. To determine this ratio take the net income and add the interest expense and divide those by the average total assets. In year 11 that rate was 12.30% and year 12 only showed a 2.48% increase to 14.78%. This rate has stayed consistent between the last 2 years and is trending in the right direction even if it is slow. I would consider this strength at this time because it is below the upper quartile of 17.2 but above the median quartile and lower quartiles of 12.3 and 8.6.

Return on equity measures a company’s profitability by calculating how much profit a company generates with the money shareholders have invested. It is important to consider ROE and not just net income in dollar term because it helps for making comparisons among different investment amounts.

One thing that can make or break a company is its brand equity. Brand equity is the value that comes with the familiarity with a company’s branding and the feelings consumers have towards that brand (Brand Equity, n.d.). A company with strong brand equity usually gives consumers a sense of reliability and value; causing a higher inclination to purchase its products. It usually takes

First of all, a strong brand can be seen as the condition for organisations to expand products, offer more service, and introduce new products (Chernatony and McDonald, 2003). Secondly, a strong brand can lead to growth marketing communication effectiveness (Keller, 2009). ‘To build a strong brand, the right knowledge structures must exist in the minds of actual or prospective customers so that they respond positively to marketing activities and programs in these different ways.’(Keller, 2003, p. 140) Furthermore, Kay (2005) asserted that the strong brand can be seen as a resource of management, which make brand extension easier and useful to build distribution network. Companies are not treated by the intermediaries (Chernatony and McDonald, 2003). Moreover, companies are comparatively easier to change price if they have strong brands. As Henderson, et al (2003) said, a strong brand can allow for premium pricing even still remain loyalty customers, which help companies to survive in the intensive competitive market.

In addition to both short and long term solvency, a company’s return on invested capital should be analyzed when determining its financial health. Ford’s

The ratios returns on investment (ROI) and return on equity (ROE) are two of the most popular measure of profitability of a company and, along

Through indicating the profit margin, return on assets and return on equity to measure sales, assets and other factors, shareholders also can know the global profit performance of the firm and indicate that how the condition of company is.

The small business marketplace is extremely dynamic and the changes are fast. Here are some encouraging facts from the US Small Business Administration on small businesses. There are about 30 million small businesses in the United States and employ just over half of the country’s private workforce. They employ a staggering 40% of high tech workers such as computer professionals, scientists and engineers. More than half of the small businesses are home-based businesses and two percent of them are franchises. One of the most important aspects is the fact that a majority of innovations in the United States come from small businesses.

The dynamics of the brand reputation helped build better businesses, and the role of the brand which consider as a barometer of value has sustained growth.

stage in the life of the business. So it is very important to work out

Sri Lanka has immense economic opportunity for aspiring entrepreneurs. The route that I would personally take if I lived in this country would be the venture into the Information technology industry. Sri Lanka is a developing country and with that IT can be a promising venture for any entrepreneur. According to the CIA, only 32.1% of the population are internet users and this could convey a possible business opportunity to inspiring entrepreneurs. A business startup that targets this market could bring immense value. The allocation of resources to achieve this could be a troublesome matter, but it could be done with hard work. There is competition in this industry, but an entrepreneur could set themselves apart from

The results of the company’s return on assets ratio measuring profitability overall was 7.2% in 2010 and 8.1% in 2011 having an increase of 0.9%. Return of common stock ratio that portrays the

One of the most important profitability metrics is return on equity. Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity. It’s what the shareholders “own”. A business that has a high return on equity is more likely to be one that is capable of generating cash internally. For the most part, the higher a company’s return on equity compared to its industry, the better.