Discuss the position and performance of company abc

Assignment Help Accounting Basics
Reference no: EM132533919

Question - Company ABC Ltd operates in the Health services sector and employs mainly contract doctors and nurses for subcontracting out to local hospitals.

You have used your skills acquired in BUS163 and have found that Health services sector averages for financial ratios/information are as follows:

Overheads = are generally high due to the high cost of employing medical professionals including doctors and surgeons

Operating margin = 40%

Net profit margin = 15%

Quick ratio = 2.5

On average entities in this sector have very little debt.

Please submit answers to the following questions based on the format above:

Required -

1) What is the purpose of calculating financial ratios?

2) Company ABC has a current ratio of 0.5, a debt ratio of 65% and a net profit margin that is negative. Discuss the position and performance of Company ABC.

Reference no: EM132533919

Questions Cloud

Prepare journal entry on December : Prepare journal entry on December 31, 2023 to record the return of the equipment to the lessor assuming the fair value of the equipment is only P600,000
Find what is the division return on investment : Find What is the division's return on investment (ROI)? Eban Wares is a division of a major corporation. What is the division's residual income?
Compute the amount of application money : First Scenario: Applications for 2 200 000 shares are received with the correct application money. Compute the amount of application money
Research effect of human consumption : Research the effect of human consumption and manufacturing/industry on the environment.
Discuss the position and performance of company abc : Company ABC has a current ratio of 0.5, a debt ratio of 65% and a net profit margin that is negative. Discuss the position and performance of Company ABC
How to construct journal entries to record the incurrence : How to Construct journal entries to record the incurrence of production costs, completion of job number A26 and the shipment of 900 cuddly koalas
Discuss the important elements to consider : Contact Manufacturing Ltd considering two alternative investment proposals.Discuss the important elements to consider when deciding between these two projects.
Discuss the disclosure requirement for events in future : The financial period for ABC ltd Company will be ended by June 2020. In your answer, discuss the disclosure requirement for these kinds of events in future
Implementation of a transnational strategy : Discuss the advantages and implementation of a transnational strategy, and explain why this strategy is closely associated with a global matrix structure

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd