Profit margin

present your results): * Current ratio * Acid test ratio * Gearing * Asset turnover ratio * Inventory turnover ratio (if appropriate) * Receivables (debtors’) days * Payables (creditors’) days * Gross profit margin * Net profit margin * Return on capital employed (ROCE) * Dividend per share (if information is available) (40 marks) Ratio | 2010 | 2011 | Current Ratio=Current assetsCurrent liabilities | 2549724283=1.05 | 2157918508=1.17 | Acid Test=Liquid

not done through a proper channel, thus ending up infringing Apple’s and other firms’ patents (Wikipedia, 2012). This outcome damaged Samsung’s reputation and suffered losses. Low profit margin. Samsung Electronics is the largest technology business in the world in terms of revenue. But its low profit margin was the result of low cost of their product and a price cut they had to endure (Wikipedia, 2012). Focus on too many products. This point could be the strength as well as the weakness

Monitor Ltd (MML) has higher gross profit margin of 34.7% ($7,080,000/$20,400,000). For every sales dollar, they are able to use 34.7 cents in the business and their COGS is 65.3 cents per sales dollar. Key Keyboard Inc.’s (KKI) gross profit margin is 31.1%. ($7,669,000/$24,650,000) They are able to use 31.1 cents in the business and the COGS is 68.9 cents, however as they have larger revenues, they can still thrive and be successful. MML has a net profit margin of 5.1%. ($1,040,000/$20,400,000)

specialized field. As a result of this rapid expansion, ABC financial woes start to unfold due to rumours about its $1.8 billion debt triggered a decline in the company's share price. The major shareholders were forced to sell their shares after receiving margin calls

Executive Summary Automation Consulting Services (ASC) has experienced rapid and tremendous growth, resulting in several issues and problems within the company. Founders are worried the company is out of control due to the increasing business practice conflict, inconsistency in entrepreneur spirit and increase in office expenses. Thus they are considering documenting a long-term company strategy, monitoring office costs and centralizing the control in order to address these problems. The purposes

chart shown above, the highest gross profit margin is HupSeng, with 35.47% compare to other two companies and the lowest gross profit margin is London Biscuits,with 25.40%. Hwa Tai gross profit margin is just more than London Biscuits about 0.10%, so it gross profit margin value was 25.50%. Gross profit margin is able to reveal the financial health of a certain company. Low margin shows that the company unable to cope with the cost of production whereas high margin indicate that the company is in a

collecting from their buyers in efficient or timely manner. When a company has large amounts of funds that are uncollected they do not have the cash on hand to purchase raw materials and pay expenses, which can negatively impact its ability to turn a profit. This will be examined further when the average collection period is analyzed later in this report. Between years 6 and 7 CBI’s Total Assets have increased by 2.2% for a change of $93,741. This shows strength in CBI because by increasing their

revealed that during 2002 and 2003, Kudler was using assets efficiently and making a decent profit. The profit margin ratio showed that during 2002 Kudler made a profit of four cents per dollar, and during 2003 they made a profit of roughly six cents per dollar. In addition, the return on assets ratio (which is also a profitability ratio) showed that Kudler utilized their assets efficiently enough to turn a profit. The solvency ratio used, which was the debt to total assets ratio, showed that during 2002

never considered shifts in the environment (gas prices and a declining economy) and consumer demands for quality and fuel-efficient automobiles. Too busy with their own internal problems, like employee contracts that forced them to focus on high profits; they had ignored and underestimated their competitors. GM has lost its share of the market. Had they focused on the innovation they had when the company was first established, they may not be in the situation they are in today. It appears that

CHAPTER 1 OVERVIEW OF FINANCIAL REPORTING, FINANCIAL STATEMENT ANALYSIS, AND VALUATION Solutions to Questions, Exercises, and Problems, and Teaching Notes to Cases 1. Value Chain Analysis Applied to the Timber and Timber Products Industry. Exhibit 1.A below contains a depiction of the value chain. The links in the value chain are as follows: 1. Timber Tracts: Plant and maintain timber tracts (Weyerhaeuser) 2. Logging: Harvests timber (Weyerhaeuser) a. Sawmills: