## CHECK THESE SAMPLES OF Return on Asset x Retention ratio

...the desired **returns** and even if it does, it is not in proportion. ROCE is better in Tesco comparatively which represents that the company is providing expected and lucrative **returns** to both the financers and shareholders. Net **Assets** Turnover The net **assets** turnover analyzes how effectively the company is utilizing its **asset** in generating the sales revenue. Morrison’s net **assets** turnover **ratio** increased in the financial year 2009 as compared to 2008. Stable net **asset** turnover does not necessarily means that the company is making profits, as the **ratio** only compares gross sales to the...

2 Pages(500 words)Research Paper

.... The current **ratio** of the company stands at 2.96 (Million) which means the company can easily pay off short term debt not once, not twice but thrice. This is a very strong position to be in; Apple has no need to take loans because it can easily pay off debt. Acid-test **ratio** goes to show how quickly **assets** can be converted into liquid cash, Apple has an edge once again and this is hardly surprising. The acid-**ratio** of the company stands at 2.63 which signify the operating efficiencies of the company give it a huge edge over other companies. **Assets** turnover **ratio** stands at 1.42, this means the sales of the company has been picking up, and...

4 Pages(1000 words)Case Study

...which are objects of their analysis. It also plausible that **ratios** can be devised based on one’s objectives although there are financial **ratios** that are conventionally or more popularly used to assess firm performance and status. As pointed out by Gibson (1982, p. 22), for example, “firm executives have many different opinions on how a firm debt position should be determined from the balanced sheet.” Profitability **ratios** include measures for earnings per share, **return** on equity, profit margin, **return** on capital, **return** on **assets**, gross margin, pre-tax margin, and operating margin (Gibson 1982, p. 23). Each type of...

3 Pages(750 words)Essay

...and the liabilities would be increased by this amount too. However, some of the liabilities will be classified as short-term –the amount that is due to be repaid next year. This equals next year lease payment ($1M) less the interest payment (10% **x** $6.144M) = $385,600. Therefore, the long term liability is $6,144K - $385.6K = $ 5,758K. The equity remains unchanged. New Long-Term Debt = 10,000K + 5,758K 15,758K New Equity = 33,460K + 0K (No changes) 33,460K Long-Term Debt / Equity 15,758/33,460 = 0.47 Current **Assets** / Current Liabilities a. The guarantee of long-term debt would not affect current liabilities or current **ratio** and therefore the debt would remain the same i.e. 1.05. b. The...

7 Pages(1750 words)Assignment

...= (233,132-143,348) ? 151,952= (147,638-100,263)? 100,291= 0.59 0.47 iii).Cash **Ratio** Cash & Equivalents ? Current Liabilities= 71,139?151,952= 27,884?100,291= 0.47 0.28 b).Solvency **Ratios** i).Debt **Ratio** Total Liabilities? Total **Assets**= 151,952?311751= 100,291?206278 0.49 0.49 ii).Interest Coverage **Ratio** Earnings Before Interest & Tax(EBIT)?Interest Expense 54,670?328= 13,245? 364= 166.7 364.1 iii).Debt to Equity **Ratio** (Rich, 2010) Total Liabilities? Shareholders Equity= 151,952?159,799= 100,291?105,987= 0.950 0.946 c).Profitability **Ratios** i).Net Profit Margin Net Income ? Sales/revenues 54,670 ?769,396= 13,245?238,023=...

6 Pages(1500 words)Coursework

...working capital is being used to generate sales. The formula is: (net sales) / [(current **assets**)-(current liabilities)].
8. Net Profit on sales **ratio**
The net profit on sales **ratio** (also called the profit margin on sales) measures the company's profit per dollar of sales. The computed percentage shows the number of cents of each sales dollar remaining after deducting all expenses and income taxes. The formula is: (net profit) / (net sales).
9. Net profit to equity **ratio**
The net profit to equity **ratio** (the **return** on net worth **ratio**) measures the rate of **return** on investment. Since it reports the...

2 Pages(500 words)Essay

...of paying its financial obligations (Current **Ratio** n.d.). With trend analysis, we can use graphs and patterns that we form out of the graph as forecasting tools to predict future prices and business status (Trend Analysis n.d.).
Efficiency **ratio** is the most important financial **ratios** category since it explains the effective and efficient use of **assets** to reach the optimal productivity. Profitability of a company will be enhanced if the company **assets** are utilized to its optimal level. Also unwanted debts will be reduced if efficiency, as reflected by financial **ratios**, is realized in a company.
Reference List
Current...

2 Pages(500 words)Essay

...position and strategy. The discussed liquidity **ratios** of the company are the current **ratio**, acid test **ratio** and inventory turnover. They are of interest to the creditors to determine the firm’s ability to meet its short term financial obligations. So far the liquidity **ratio** of the company indicates that the liquid **assets** of the company are higher compared to its own average, meaning that the company as **assets** that can be easily be converted to cash. The indication of good liquidity **ratio** reduces the worry of the creditors since the business is at a position to easily pay its short term liabilities.
Profitability...

1 Pages(250 words)Essay

...research of their own.
The larger companies made wise investment decisions in order to reach their current level of organizational growth, and therefore, it is usually a safe bet to entrust them with one’s money. The companies pay **returns** in the shape of dividends, and one can analyze the corresponding payout **ratios** to calculate his or her earnings. The investors must keep their money with those companies that are paying dividends on a frequent basis with lower level of risk exposure.
References
Fry, M. (1990). Saving, investment, growth and the cost of financial repression. World Development Vol 8 (4), 317–327.
Vernon, R. (1966). International Investment and International Trade in the Product...

1 Pages(250 words)Essay

...S&S AIR COMPANY Internal growth rate= (**Return** on **Asset** **x** **Retention** **ratio** **Return** on **Asset** **x** **Retention** **ratio**)
**Return** on **Asset**= 2,029,766/19,986,170=0.10
**Retention** **ratio**= 1-dividend pay-out; Dividend pay-out= 610,000/2,029,766=0.3
1-0.3=0.7
IGR= (0.1 **X** 0.3)/1-(0.1 **X** 0.3)
0.03/0.97=0.031
3.1%
Sustainable Growth Rate= (Net income/ Shareholder’s equity) **x** (1-**retention** **ratio**)
(2,029,766/11,435,815) **x**...

1 Pages(250 words)Case Study