The profit returned from a bet winning with odds of 2.618 is 1.618, which is the golden ratio. The golden ratio, denoted by $\phi$, is that if two quantities $a$ and $b$ satisfy the following expression: \begin{equation} \frac{a+b}{a}=\frac{a}{b}= \phi \end{equation} \vspace{12pt} The algerbraic form of the golden ration is given by: \begin{equation} \phi=\frac{1+\sqrt{5}}{2} \end{equation} \vspace{12pt} This is approximately 1.618. The further down the Fibbonacci sequence one goes, the closer the ratios of two successive numbers get to the value of the golden ratio. \vspace{12pt}
Think of this in general as X/Y. So, the money market formula is, in general,
Ratio analysis is a very useful tool when it comes to understanding the performance of the company. It highlights the strengths and the weaknesses of the company and pinpoints to the mangers and their subordinates as to which area of the company requires their attention be it prompt or gradual. The return on shareholder’s fund gives an estimate of the amount of profit available to be shared amongst the ordinary shareholders; where as the return on capital employed measures an organization 's profitability and the productivity with which its capital is utilized. Return on total assets is a profitability ratio that measures the net income created by total assets amid a period.
In this task i will be stating the different types of ratios and calculating them for the each type.
The first ratio used in the financial analysis was a profit ratio which is the Return on Total Assets (ROA).
What are ratios and what are they used for? Ratios are mathematical tools that are used in the financial part of any business. Some ratios can consist of fractions or decimals, and some percentages. For large businesses and organizations, they use efficiency, liquidity, profitability, and solvency ratios.
The key to success is not in working out which horse has the best winning chances but in finding horses that are more likely to win than the odds reflect. This is what value betting leads to; backing a horse when the odds are longer than they should be. Bookmakers are not the best when it comes to crafting odds and there are certain moments you could take advantage of in order to make good value
Don’t forget that the participants were basically being given £20, but just because they started with £50 and were told of the risk of "losing" £30, they were more compelled to gamble.
This ratio is more favourable when it is low as it indicates the number of cents an investor will have to invest in order to currently earn 1 cent.
Golden Ratio is found by dividing a line into two parts so that the longer part divided by the smaller part equals the whole length divided by the longer part. Golden ratio is very similar to pi because it is an infinite number and it goes on forever. It is usually rounded to around 1.618. The formula for golden ratio is a/b = (a+b)/b. It has been around for a long time so it is not known who made up the golden ratio. Since the golden ratio is used all around the world it is known in many names such as the golden mean, phi, the divine proportion, extreme and mean proportion, etc. Golden ratio was used in arts from the beginning of people and still is used today. It has been used in architecture, math, sculptures and nature. Euclid talks about it in his book elements. Golden ratio is also used in Fibonacci numbers and Lucas numbers. Golden ratio also comes in the form of a rectangle.
The Fibonacci sequence has led to many mathematical advances over time, and it is used in many different areas of life. It is an important part of life due to its ever present appearances throughout nature, mathematics, pop culture, and business.
This ratio measure of profit earned for each dollar invested by the owner, calculates as profit available to ordinary shareholders divided by average shareholders’ equity (Birt et al., 2010)
3.3 Describe and explain the various ratios which you will use to convince the Bankers P4.3
As the interpretation as well as an understanding of financial ratios is crucial when calculating ratios, we are analyzing Fyffes from different angles.
A ratio refers to a figure or percentage derived from dividing one item from one financial statement by another item from same or another financial statement (Periasamy, 2010, p. 233). It means that it is an accounting ratio.
Endawati, Dr. Izzati Amperaningrum, SE. Graduate Program, Accounting Information System, 2009 Gunadarma University http://www.gunadarma.ac.id Keywords : Stock ABSTRACT : Financial ratio describing a relationship or balance between a certain number with another number. Financial ratio analysis can be used to guide investors and creditors to make decisions or judgments about company achievements and future prospects. One way of processing and interpreting accounting information, which is expressed in relative and absolute terms to describe a particular relationship between the number of one with another figure of a financial