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Debt utilization - PowerPoint PPT Presentation


Chapter

Chapter

3. Chapter. Financial Analysis. Chapter 3 - Outline. Financial Analysis 4 Categories of Financial Ratios Importance of Ratios Inflation and its Impact on Profits. What is financial analysis?. Evaluating a firm’s financial performance Analyzing ratios or numerical calculations

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997 views • 60 slides



Profitability Ratios

Profitability Ratios

$200,000 $4,000,000. Net income sales. Net income Total assets. $200,000 $1,600,000. Net income Sales. Sales Total assets. Net income Stockholders’ equity. $200,000 $1,000,000. Return on assets (investment) (1 – Debt/Assets). 0.125 1 – 0.375. 0.10 1 – 0.33. T 3-3.

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718 views • 7 slides


Profitability Ratios

Profitability Ratios

$200,000 $4,000,000. Net income sales. Net income Total assets. $200,000 $1,600,000. Net income Sales. Sales Total assets. Net income Stockholders’ equity. $200,000 $1,000,000. Return on assets (investment) (1 – Debt/Assets). 0.125 1 – 0.375. 0.10 1 – 0.33. T 3-3.

★ ★ ★ ★ ★

656 views • 7 slides


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