The Financial Position Of Entertainment Alive 's Industry

* Return on assets (ROA) – ROA shows how successful a company is in generating profits on the amount of assets they own. Since assets consist of debt and equity, ROA is a measure of how well a company converts investment dollars into profit. The higher the percentage, the more profit a company is generating per dollar of investment. Similar to ROS, this ratio needs to be looked at compared to the industry as different industries have different requirements that can affect ROA. For example, companies in the airline and mining industries need expensive assets to operate so will have lower ROA’s compared to companies in the pharmaceutical or advertising industries.

First of all, return on asset (ROA) is a ratio used to measure how efficient a company generates profit using its assets, which is the invested capital. We noticed that HH’s ROA was increasing from 2006 to 2010. However, HH’s ROA for 2011 dropped dramatically from 18.41%(year

The Rate of Return on Total Assets is the ratio that shows the earnings of a company including

Rate of return on common stockholders’ equity: This ratio determines how much profit the company makes from the money invested by the shareholders. Investors will use this ratio to determine if the company is profitable over

ROA ratio indicates the efficiency with which management has used its available resources to generate income. In 2009 there was a decrease in ROA value, but ROA in 2010 matches the industry average. That means that assets in 2010 were used efficiently.

The return on assets ratio measures the overall profitability of assets in terms of the income earned on each dollar invested in assets. Kohl's has a 8.3% but JC Penne only has 3.0%.

The return on equity (ROE) is the main ratio focused by the investors. ROE is divided into two extra ratios which are return on assets (ROA) and equity multiplier (EM). ROA is a mixture of expense ratio and revenue ratio which is also recognized as asset utilization. The total expense ratio contains of total non-interest expense, total interest expense ratio to total assets ratio, income tax to total asset ratio and provision for loan losses to assets ratio. The asset utilization contains of total non-interest revenue to total assets ratio and total interest revenue to total assets ratio.

Return on Total Assets was 4.43% which is below five percent. That indicates that the company is not accurately converting its assets into profit. The total for Return on Stockholders’ Equity was 8.89%, however financial analysts prefer ROE to range between 15-20 %. The company’s low ROE indicates that the company is not generating profit with new investments. Lastly, Debt-to-Equity ratio for the company was 1.01 which indicates that investors and creditors are equally sharing assets. In the view of creditors, they see a high ratio as a risk factor because it can indicate that investors are not investing due to the company’s overall performance. The totals of these three ratios demonstrate that the company’s financial state is not as healthy as it should be.

As we examined the financial evaluation of Caesars Entertainment Corporation, it will reveal the financial stability of its revenues, gross margin, and earnings per share. The largest gaming companies in the world under the leadership of CEO Mark Frissora and its 31,000 employees. It is ranked #7 in the Airlines, Hotel & Travel industry. Its ticker symbol was CZR, established in 1989. Now as we further examine the financial of Caesars, we will describe the profitability, liquidity, solvency, and the positive/negative trends over the last three (3) years. The profitability will show and yield profit or financial gain. Liquidity will describe and reveal the availability of liquid assets; how easy it is to convert assets to cash.

Rate of Return on equity measures a corporation 's profitability by revealing how much profit a company generates with the money shareholders have invested. It indicates how efficiently the business uses its investment funds. For Tesco, Rate of Return on Shareholders’ Fund has increased from 13.85% in 2004 to 14.91% in 2009. This shows an improvement of 1.06% in five years period. When one examines the Sainsbury’s Rate of Return on Shareholders’ Fund, there is an increase from 7.76% to 8.36%. There is a 0.6% growth in the Rate of Return on Shareholders’ Fund. In comparison with Tesco, Sainsbury’s Rate of Return on Shareholders’ Fund is lower. Shareholders earned 13.85% from their investment (measured in book value

Note: Use the following formulae for ratio calculations if required. Key Ratio Formulae: Performance Ratios Return on Equity (ROE) = Net Profit After Tax / Shareholders’ Equity Return on Assets (ROA) = Earnings before Interest & Tax (EBIT) / Total Assets Profit Margin = Net Profit After Tax / Sales Revenue Gross Margin = Gross Profit / Sales Revenue Activity Ratios Asset Turnover = Sales Revenue / Total Assets Inventory Turnover = COGS / Average Inventory Days Inventory on Hand = 365 / Inventory Turnover Debtors (receivables) Turnover = Credit Sales / Average Trade Debtors Days in Debtors = 365 / Debtors turnover Creditors Turnover = Purchases (or COGS) / Average Accounts

Return on assets indicates the number of cents earned on each dollar of assets. In 2012, the ROA decreases from 20.29% to 12.44%. The decrease in value says the asset of the company is not generating more income

Net Profit Margin (%): It’s a ratio of the net income to sale and indicates the management’s ability to operate the business with sufficient success, and essentially expresses the cost price effectiveness of the operation.

Another key ratio to gauge how effectively the management is utilizing its resources is the Return on Investment (ROI) ratio. This indicator shows how successful the firm is at generating profit from its investments. Typically, its expected that whatever investment the firm makes, would be successful enough to pay for itself and make a profit. The industry standard for this sector is 3.47. The six companies in this report are all above average with Nordstrom in the lead with 15.97 and the lowest being Macy’s with only 3.55, which is barely above the industry average.

Alibaba’s return on assets (ROA) was 13.23%, which is an index to measure how much net profit per unit of assets creates. The higher the ratio