Finance and Funds

5636 Words23 Pages

I would like to take this opportunity to thank all those who helped me for the successful completion of our first assignment for the module of finance and funds for travel and tourism.

Firstly I would like to thank our parents, who were always there for me, standing by my side and giving me tremendous support and encouragement which really boosted me in making this report a success.

I also would like to great thanks to our Module lecturer, name for guiding me throughout this report and giving me endless support which really helped me through the completion of this report.

And lastly, I would also like to thank all our friends, the lab assistants for enabling me to use the computer laboratories, and the library
…show more content…
There are various ratios that can be determined from the balance sheet. They are drawn on by bankers, investors and venture capitalists while indicators of the strong point and health of the enterprise. A few of the further well-liked ratios are:

Profitability ratios

These are used to assess how successful the management of a business has been at earning profits for the business from sales and from the assets employed. They are widely used to measure the performance of a company, and therefore by implication, the performance of the management team too.

Gross profit margin

This ratio compares gross profit (profit before deduction of overheads) with sales turnover.
Gross Profit Ratio = (Gross profit / Net sales) × 100

Net profit margin This ratio compares net profit (profit after all costs have been accounted for) with sales turn over.
Net Profit Ratio = (Net profit / Net sales) × 100

Return on capital employed
This ratio is used to assess how much profit we earn from the investments the shareholders have made in their company Return on capital employed = Profit for the Year * 100 Equity Shareholders' Fund

Liquidity ratios
This ratio conveys a company's ability to repay short-term creditors out of its total cash. The liquidity ratio is the result of dividing the total cash by short-term borrowings. It demonstrates the number of times
Get Access