Apeda's Financial Ratios

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

The problem identified in this paper is the low margins in the industry. Because margins are low, the profitability of individual companies depends on high

Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.

Gross profit of 60% has not increased much over past three years it will affect

The following report is a brief comparative analysis of two of Australia’s largest deposit-taking financial institutions (FI), Australia and New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corporation (Westpac). This report seeks to identify which of the FIs has a greater aggregate return per dollar of equity and thus establish the highest performer, or most profitable, of the two. The Return on Equity Model (ROE) (Koch & MacDonald,

So while the company increased its net income, it has done so with diminishing profit margins.

Rolls-Royce has been generating higher margins in past few years. In last four years i.e. from 2002 to 2006 the operating profit has grown from £168 million to £692 million with the annual growth rate of 42.5%. The net profit has also increased at compound annual growth rate of 71.3% from £53 million to £998 million in these four years. These figures are the indicators of a strong financial performance. It is evident from the figures that the high levels of margin in their field of operation are very

Although the company made strategy through original cost system, it is still unclear why the profit was declining. Might be some problem when the company was allocating the cost on both lines, and the methods to allocate will route a wrong strategy for the company.

The higher the ratio is, the more effective the company is in converting revenue into actual profit. By comparing the company’s results overtime, we can see that AnandRathi’s percentage of sales revenue that transformed into net profit was highest at 27.90% in the year 2009-10 as compared to succeeding years and decreased to 9.09% in 2013-14. Therefore by comparing the ratio with that of the previous years’, we can infer that the company is not improving its profitability.

AT&T Inc. 's current ratio in the year 2015 was 75% and its quick ration was also 75%. AT&T’s profitability ratios are: Gross margin ratio is 54% and operating margin ratio is 17%. The Return on Assets in the

The current increased price in fuel since 2 years causes irobot Company to have a slightly lower profit margin as now we have to increase our fuel expenses.

Ford earned $1.90 per share ending 2010. The company showed a 5% return on sales. A comparison of General Motors Company will show Ford’s performance when comparing this percentage. High risks in business either equates to high profits or high losses. Ford’s company’s return on equity of 109% shows that their risks proved to be profitable in the automobile industry in 2010 (“,” 2012).

Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput. A second reason for some of the

The sales growth in the past years was quite significant, but the growth in net income was not proportionate to growth in sales. The growth in net income was only 16%, whereas the increase in sales was 56%. The increase in expense is attributable to the increase in interest expense. Therefore, the company is planning to introduce some of its own capital and install new machinery in future. This will reduce the cost of producing the goods and services in future.

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