Finance and Accounting Essay Example | Topics and Well Written Essays - 2000 words - 1

Finance and Accounting - Essay illustrationReturn on Capital engagedEBIT/ Shareholders funds + LT LiabilitiesEBIT$ 13,302$ 11,876Capital employed$ 69,326 $ 66,864ROCE = 19%18% unclutter MarginNet Income/ Net SalesNet Income$ 9,197$ 8,081Net Sales$ 98,458$ 91,115Net Margin9%9% plebeian MarginGross Profit / Net SalesGross Profit $ 57,745 $ 53,198 Gross margin = 58.6%58.4%Finance and Accounting P 4Overheads as % of disturbance diffusion & Admin (Excl amortization of Goodwill)Distribution$ 8,244$ 7,402Marketing & Admin$ 34,465$ 32,421Total Overheads$ 42,709$ 39,823Turnover $ 101,805$ 102,718Overheads as % of Turnover42%39%Distribution as % of Turnover8%7%Marketing & Admin as % Turnover34%32%Turnover / Capital Employed1.471.54Turnover / Fixed AssetsFixed assets$ 20,230$ 18,990Turnover / Fixed Assets5.035.41Turnover / Net current AssetsNet up-to-the-minute Assets$ 35,305$ 41,765Turnover / Net current Assets2.882.46Turnover / Stock$ 5,926$ 5,926stockFinance and Accounting P 5Turnover / Stock17.1817.33Current RatioCurrent Assets$ 35,305$ 41,765Current Liabilities$ 32,479$ 35,854Current Ratio1.091.16Acid straincurrent assets less stock/ c liabilities...The ratios as computed showed that these are the financial indicators distilling the relevant information with regards to the entity of caper by quantifying the relationship among the selected items appearing on the financial statement. The ratios of the entity may also be compared with the different ratios of a different period and to the industrys ratios. These comparative analyses shown below were able to identify the trends that may be very probative with the investors, the lenders and at the same time other parties who are very interested. The profitability ratios of both companies are for purposes of mensuration the income in relation to some base and the more general is due to profit wherein these are the results of numerous factors such as the operating decisions, the leverage and the other considerations necessary for both companies. The liquidity ratio or simply the solvencyBoth companies have shown that they are good indicators in terms of current ratio because as compared with the last years performance, both companies are doing very well. These ratios are designed for the purpose of highlighting the relationships considered to be purposeful between those financial data.