Finance and Funds

Profitability ratios are used to measure the overall efficiency of thebusiness, as well as management effectiveness. Examples of profitability ratios include the gross margin ratio and the net margin ratios.

Financial ratios are useful indicators of a firm’s performance and financial situation (Friedlob & Schleifer, 2003). Ratios can be used to

These ratios will help us see how effective a company is at using their sales or assets and turning this into income.

Lastly, I offer my regards and blessings to all of those who supported me in any respect during the completion of the report.

this ration is: Rate of Return on Net Sales equals Net Income divided by Net Sales. A high or

Gross profit is defined as the difference between Sales and Cost of Sales. The gross margin (or gross profit ratio) expresses the gross profit as a proportion of net sales. The gross profit margin ratio measures how efficiently a company uses its resources, materials, and labour in the production process by showing the percentage of net sales remaining after subtracting the cost of making and selling a product or service. It indicates the profitability of a business before overhead costs. The higher the percentage, the more the business retains of each dollar of sales. So: the higher the gross profit margin ratio, the better.

By using profitability ratios, investors can measure the income or operating success of a company for a given period of time.

This shows the income of the sales revenue which is being made by the business. Also it analyses how well a business uses its assets and liabilities

With the given opportunity, we would like to express our deepest appreciation to each and everyone who have been helping and involved in the process of conducting the research. To our parents, the support and love given to us have been giving us the strength to continue and finish the research paper. We would like to acknowledge and give our greatest gratitude to our lecturer, Puan Mazli Shahurain for her guidance, encouragement and support throughout the completion of our research paper. Thanks to her, for showing us examples

This paper examines financial ratio analysis by defining, the three groups of stakeholders that use financial ratios, the five different kinds of ratios used and their applications, the analytical tools used in analysis, and finally financial ratio analysis limitations and benefits.

The second ratio represents the fraction of EBIT (i.e., operating profit) that the firm keeps after financing

Liquidity represents a company’s ability to pay its short-term obligations. In the following schedule is the calculation of the ratios that are indicators of the liquidity position of a company.

It measures the utilization of assets in generation of net income. The ratio for Oracle stood at 9.9% as compares to 7.0% of Microsoft. It indicates a

The calculation of ratios is the calculation technique for analyzing a company’s financial performance that divides or standardize one accounting measure by another economically relevant measure. Financial ratios can be used as a tool to demonstrate financial statement users for making valid comparisons of firm operating performance, over time for the same firm and between comparable companies. External investors are mostly interested in gaining insights about a firm’s profitability, asset management, liquidity, and solvency.

I wish to express gratitude to our lecturers David Longbottom and Amir Modjtahedi, who were always helpful and offered assistance supports and guidance whenever needed. A special thank you to all students that participated, and took time to fill in the questionnaire and research.