Annual report analysis Essay Example | Topics and Well Written Essays - 1000 words

Annual report analysis - Essay ExampleIt shows that company was non performing as good as it is performing in the current year and it is coming back to its real best.autonomic nervous system 3 Working detonator is basically is a ratio which indicates later on deducting liabilities from its assets mean current assets. So it is before the sign of strength of the company. If any company has large equal operates capital after paying off all of its liabilities that means it is still in position to run its operations. Working capital and current ratio be directly related because both indicate the strength of the firm after paying off its liabilities. Yes, definitely because the larger the working capital firm has after deducting its liabilities the larger the chances that it can pay off its liabilities gracefully.Ans 8 After overall analysis of the firm, figures suggest that firm is not doing well enough work in the form of its profitability ara. The firm is not enough to eliminat e its expenses and that is why all of its ratios represent very vile figure of their profitability scenario. or so all the ratios are giving a very poor picture of the companys standing in the industry. It has been the situation in all three years and they are still not putting effective to overcome this problem.ans 11 After analyzing the companys debt and debt equity ra... 2003 0.212004 0.42005 0.34Ans 6 The price earning per share is 0.4. Ans 8 After overall analysis of the firm, figures suggest that firm is not doing well enough work in the form of its profitability area. The firm is not enough to eliminate its expenses and that is why all of its ratios represent very poor figure of their profitability scenario. Almost all the ratios are giving a very poor picture of the companys standing in the industry. It has been the situation in all three years and they are still not putting effective to overcome this problem.Ans 10 The Companys debt ratio and debt equity ratio are as foll ows Debt ratio debt equity ratio05 0.618 1.61804 0.164 0.19703 0.043 0.04502 0.064 0.068ans 11 After analyzing the companys debt and debt equity ratio it has been noted that the company is using its investments very efficiently and the industry average of ratio should be around 0.1 - 0.5Ans 12 ROI is the earnings on the investments that are originally brought by companys borrowings (equity) ROI and ROE are interrelated in a manner that the company invests its borrowed coin to earn profits. Financial leverage takes the form of borrowing money and reinvesting it with the hope to earn a greater rate of return than the cost of interest. Leverage allows greater potential return to the investor than otherwise would have been available. The potential for prejudice is greater because if the investment becomes worthless, not only is that money lost, but the loan still needs to be repaid.Ans 13 The Companys debtor turnover ratio is as follows3 69.34 78.85 122.16Ans 14 After analysing the