Financial management - Essay Example

Extract of sample
Financial management

This presents that fact that the company has been able to maintain its cost of sales and made sure that it remains in constant proportion with the revenue. The company has been able to manage the impact of inflation in the cost of material and labor. The operating profit margin follows the same trend. Net profit margin, on the other hand analyzes the profitability of the company before deducting the taxation and finance charges from the earnings. The ratio is calculated by dividing the profit after interest and tax with the sales revenue of the current financial period. The ratio highlights how well the company is managing its selling and administrative expenses it also highlights the other income generated by the company during the course of its operations. The net profit increased significantly in the financial year 2012 as compared to the financial year 2011. ...Show more

Summary

Question 1 (part a) Profitability Ratios  2011 2012   Profitability Ratios Gross profit margin 44.00% 45.88% Operating profit margin 8.00% 9.41% Net profit margin 6.67% 7.06% ROA 18.38% 13.95% ROCE 29.27% 29.63% EPS 5.00 6.00 Liquidity and Effeciency ratios 2011 2012 Liquidity Current ratio 1.37 2.88 Acid test ratio 0.81 1.50 Debtors turnover period 14.42 7.08 Creditors turnover period 9.13 12.43 Inventory turnover 11.05 4.18 Capital Ratios 2011 2012 Gearing Ratios Equity ratio 0.75 0.63 Debt ratio 0.25 0.37 Debt : equity ratio 0.75:0.25 0.63:0.37 Part (b) Gross profit margin is an analyzing tool which assists in identifying how effectively and efficiently the company is utilizing its raw m…
Author : lfeeney
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial management"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Management Coca-Cola Company
Investment is a vital activity which requires various types of analysis to be done. To choose the right company is a very important decision. If the investor chooses the wrong stock then he or she could have to bear loss. The nonfinancial parameters has been discussed in this project.
6 pages (1500 words) Research Paper
Financial management
Non-governmental Organizations are set up to offer services or goods to people with the aim of assisting them though capacity building. Financial management practices in NGO’s are different from the operations of For-Profit organizations. For instance, NGO’s source their funds through donations, sponsors or charitable sources.
6 pages (1500 words) Essay
The understanding financial data, and developing and making judgements on proposals against strategic objectives
This paper is an international module providing a broad overview of financial values for all learners and a base for additional in depth study of finance and accounting. The report consists of International Financial Reporting, Interpretation of accounting information, Budgeting and Organisational Objectives and Investment appraisal Techniques.
15 pages (3750 words) Essay
Integration Paper - MBA
MBA Market Place Segmentation Market segmentation can be defined as set of people or organisation that tends to share one or more similar characteristics which cause them to require the same product need and further divide the total market into various segments.
4 pages (1000 words) Assignment
Financial management
(“Companies”) Analysis And Discussion Based on current ratio and quick ratio, how does your company’s liquidity in the year 2011 compare with the other company? Here we have done the liquidity analysis of company A with the company B for the year ended 2011.
4 pages (1000 words) Essay
Financial Management
This merger led to the creation of the largest brewing company with $36billion in sales.The merger has over 11600 employees in over 30 counties. The merger deal was completed in November 2008 (Anheuser-Busch InBev, 2008). Description of firms and industries: Anheuser-Busch: It’s a leading company that was established in 1860 in Missouri St Loius.
8 pages (2000 words) Term Paper
Financial management (answers on questions)
The cash conversion cycle for a company is the measure of the average time required, for a company, to convert the resources it has as input into cash flows.
4 pages (1000 words) Essay
Financial Management
The financial performance analysis helps in evaluation of the relationship in between different components present in the financial statement for obtaining a transparent and accurate understanding related to the position and performance of an organization.
8 pages (2000 words) Assignment
Finance for business decision
The impact of the agency problem may result into the reduced firm value and as such the interests of the minority group of shareholders may not be served by the large shareholders or the management of the firm. Corporate governance is considered as one of the most effective
4 pages (1000 words) Speech or Presentation
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT