Ratios

The Role of Financial Ratios Table of content Introduction 3 Chapter 1. Notion and types of ratios. 4 1.1 Liquidity ratios. 5 1.2 Financial leverage ratios 7 1.3 Funds management ratios 9 1.4 Profitability ratios 12 Chapter 2. Use of financial ratios. 15 2.1Use and Limitations of Financial Ratios 15 2.2 Used financial data 15 2.3 Financial ratios calculated for The Apple Company 16 2.4 The Dupont Model 18 Appendix 1 21 Conclusion 23 Bibliography 24 Introduction I have chosen

INTRODUCTION In this report I will discuss the Golden Ratio and the Fibonacci sequence .I will provide work done on the exercises and give data and information from the exercises. This report will be based on 3 exercises given to me : (1) Get Golden Ratio with derived Formula. (2) Get Golden Ratio using successive approximation technique. (3) Get Golden Ratio from Fibonacci series. [1]The Golden Ratio according to Hom.E(2013) “is a special number found by dividing a line into two parts so that

Profitability Ratio The profitability ratio is a class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time (Investopedia, 2014). It is used to determine how profitable a company is over a period of time, generally one year. The profitability ratio for Grace Kennedy group is shown below for 2009 through to 2013. Profitability Ratios Formulas 2013 2012 2011 2010 2009 Gross

$10b $9300m Key Profitability Ratios: Profit Margin = Net Income/Net Sales

Valuation Ratios Comparing all the companies we have here, we know the sector value is 6.15, and we can see that Costco is has the largest number with 28.59, meaning that this company has big growth, and it is not risky. Along the other companies, we know that Target, Walmart, and Home Depot are doing well too. In this same case Nordstrom and Macy’s are not doing so well, they are a little below average, so we can conclude they are not growing that fast, and they are tending to become a little

definitely a clear difference in the value of Debt-to-Equit ratio for Aveva inc as compared to that of Drax plc. The financial performance for Aveva as can be seen on the figure above show a consistent results in every single year, with only FY 2014-205 showing a little rise which can be attributed to the uncertainties in stock markets as a result to slowdown that was experienced in China and the Asian countries. Drax Plc has had a rise in its DE ratio continuously. An investor would be interested in the

Financial analysis If you glance at the financial ratios in the income statement you would see that Walmart is operating at a high capacity. The company’s profit margins although high are declining at time passes by. After looking at Walmart’s liquidity, the company is in a great position, it can pay off its debts without much trouble. Liquidity ratios include current ratio and quick ratio. If you look at the financial records you would see that current ratio has been on the rise since 2013. The liquidity

Based on quick and current ratios of both companies, it is very evident that Classics has is financial stronger to pay off its debt than Moderns. Classics current ratio is 5.88 and quick ratio of 1.24 as opposed to Moderns ratios of 2.94 current and 0.55 quick. Moderns has also a suffered a huge 23% drop in their already weak quick ratio of 0.72 to a sudden drop of 0.55. This means that for every dollar of debt the company only has $0.55 of liquid assets to pay it off. As investors, we take into

Ratio Reasoning Assessment Upon observing a 6th grade math class I observed the teacher teaching the student’s about order of observation to evaluate algebraic expression. On the following day the teacher introduced the students into the concept of translating math phrases into numbers, variables, and operations. At the completion of my class observation I was able to administer a formative assessment on ratios. This paper will document what was observed during the ratio assessment. The students

see the chart the net profit ratio of idea has come down to .07nwhich in not a good indicator. It net profit ratio is declined from last year. This indicate the ineffciency of company to maintain the net profit. Comparison If we see the performance of both companies on the basis of this ratio Airtel is performing better than Idea. 3.2 Gross Profit Ratio- It is a profitability ratio that shows the relationship between gross profit and total net sales revenue. This ratio tells about the operational