Exxon ratios are fluctuating within 1.0 to 0.84, whereas Chevron ratio is always greater than 1.50. This clearly indicates that Chevron is in better position in meeting its obligations when compared to Exxon. If this decline continues for Exxon then there are chances where the company cannot meet up its short-term obligations and lead to financial distress. Quick ratio: It is another indicator of liquidity which is determined by subtracting inventory from the current assets and dividing by current liabilities. Inventories are less liquid asset, so it is eliminated in determining this ratio.
Meaning RBC isn’t operating in efficiency compared to its industry. BMO, RBC and Sun Life Insurance comparison Of the three insurance companies Sun life has the highest profit margin. Meaning it is operating more efficiently and earning more per $1 in sales than its two competitors. Whereas, RBC has the lowest profit margin of the three; which is not favourable. When it comes to days’ sales uncollected, BMO has the highest number of days.
It is calculated as: Total assets divide by total equity. As equity multiplier calculates leverage, the higher EM indicates that a bigger portion of asset financing is being used through debt. The smaller amount of equity multiplier is better, because it spends less money to fund an asset. As we can see on the tables, the EM of Citi Group was 12.161 times in 2009 and 11.706 times in 2015 respectively, it had decreased by 0.455 times due to bigger increase in total equity which was $154.17 billion dollars in 2009 and $157.33 billion dollars in 2010. In general, both Citi bank Group and Bank of America used less equity capital to funds their assets after financial crisis.
The EPS ratio for PPGL shows a decreasing trend, as it drops from $2.76 in 2009 to -$31.96 in 2013 with its peak in 2011 at $3.19. This reflects the decreasing profitability ratios. HGHL on the other hand shows an overall percentage increase of 45.61% as over the five year period, the ratio rises from $21.97 to $31.99 in 2013. HGHL is the safer company to invest in because the ratio shows there are more earnings per share available to investors. The DPS ratio allows shareholders to examine the proportion of earning that will be paid out as dividends.
Receivables Turnover: With a lower receivables turnover ratio than the industry, SIA should consider reviewing its credit policies to ensure timely collection of imparted credit that is not earning interest for the firm. Profitability Analysis Sales: SIA's revenue has been increasing for the last 2 years since FYE2005. However, this growth has slowed down from double digit growth to 8.6% recently. This is not a concern as SIA is still considered as one of the more profitable companies in the industry as shown in its Net Income and Operating profit ratios. With the new addition of A380s they will also be able to charge higher prices.
The earnings per share for both the companies is following a zigzag trend due the change in net income for the respective years. In the years 2010 and 2011 the earning per share of IOCL has decreased in comparison to HPCL due to increase in number of shares from 119.47 to 242.7. The share capital of IOCL is quite large in comparison HPCL i.e. IOCL’s equity share capital is 2427.95(crore)and that of HPCL is of 339.1(crore) but the profit earned by the company is not much in contrast to each other so EPS of IOCL is in same range as of HPCL.
Kodak’s debt ratio has been improving since 2012 when it was considerably above 1. Their 2014 debt ratio is 0.89, which is very close to Hewlett-Packard and Sony. The debt-to-equity ratio of Kodak is the first signal within the ratios that the company is not performing well. Generally, this ratio should be below 1 and for Kodak in 2014 it was 8.83. Their equity is almost non-existent and this is signaling very weak balance sheet strength.
Since the assets exceeded the liabilities (debt) closely, one could infer that this year was not viewed as profitable. In 2013, the assets were much higher than the liabilities which expressed that this was a better year than 2014 was. According to these figures, the hit eBay took in 2014 could possibly be why the stock dropped around $30 less. The price is currently going up but not by much at all. Some new efforts are likely to be the cause of the current stock price corresponding to the year before
This ratio shows how much company earned on the money of shareholders. In 2012, ROE is deeply negative at 44.4% but in 2013, it got significantly improved and touched 6.5%. However, it can’t be treated as a healthy figure but in comparison to profit margin or operating ratio, it is a respectable one. Return on Assets (ROA) is defined as net profit/total assets. This ratio shows the earnings on employed assets.
Invest in a company’s stock only if its market cap is higher than a hundred million or more. Tips: • The price to earnings ratio (P/E ratio), calculated by dividing the share price by the company’s annual net income, is the most commonly used measure for evaluating a stock. • Stocks having a higher P/E ratio than the market are considered to be more expensive. • However, don’t go for stocks giving low P/E ratio because even though they are cheap they might not be good stocks.