Pyramid of ratios in analysis of performance

Assignment Help Accounting Basics
Reference no: EM13987580

Why is financial gearing riskier for a company which has fluctuating profits?

Explain the use of the pyramid of ratios in analysis of performance.

What are the limitations of ratio analysis?

Reference no: EM13987580

Questions Cloud

What is the purpose of a highlights statement : What is the purpose of a highlights statement? How does a five-year summary of historical results help investors? How does segmental information help the users of financial statements?
Experimental implementation of the tank : What impact did the tank have on the effectiveness of ground forces?
Determine the adiabatic flame temperature : Determine the adiabatic flame temperature for the stoichiometric combustion of propane in air. Use a heat of formation of propane of -44,800 Btu/lb-mole
Objective of the operating and financial review : 1. What is the objective of the operating and financial review? 2. Why is there no prescribed format for the OFR? 3. What are the main principles set by the ASB for the OFR?
Pyramid of ratios in analysis of performance : Why is financial gearing riskier for a company which has fluctuating profits? Explain the use of the pyramid of ratios in analysis of performance.
Describe the component plots as time approaches infinity : In a separate cell (called Summary Cell ) compare the results of Case I and Case II in terms of - Stability, Direction of the phase plot with respect to equilibrium point and initial condition and Describe the component plots as time approaches infin..
Calculate the amount of the ownership interest : Explain how each of the items (i) to (vi) will affect the ownership interest. Calculate the amount of the ownership interest after taking into account items (i) to (vi). (Hint: first calculate the profit of the  year.)
What is the maximum kinetic energy of electrons : Barium has a work function of 2.48 eV . What is the maximum kinetic energy of electrons if the metal is illuminated by UV light of wavelength 375nm ? Express your answer using three significant figures.
What is the investments net present value : What is the investment's net present value when the discount rate is 16%?  Refer to your calculations. Is this an acceptable investment?  Why or why not?

Reviews

Write a Review

Accounting Basics Questions & Answers

  First step in software development

You are designing an algorithm that will store a date as 01202009. Which data type would you choose for the datevariable?

  Compute the return on investmentroi for each division

1. compute the return on investmentroi for each division usingthe formula stated in terms of margin and turnover.2.

  Purchasing at face value

On January 1, 2010, Milton Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 and July 1. Milton Company has a calendar year end.

  Sands company had accounts receivable 55600 and allowance

on january 1 2010 sands company had accounts receivable 55600 and allowance for doubtful accounts 5390. sands company

  Swiss chocolate manufacturing company

The following costs and revenue pertain to the Swiss Chocolate Manufacturing Company, a U.S. producer of chocolate bars, for July 2015.Swiss Chocolate Manufacturing Company

  On april 8 2010 a flood destroyed the warehouse of stuco

on april 8 2010 a flood destroyed the warehouse of stuco distributing co. from the waterlogged records of the company

  Accounts receivable on the statement of cash flows

Wildcat started the year with $25,000 in accounts receivable and ended the year with $40,000 in the account. Describe how information regarding the company's accounts receivable should be reflected on its statement of cash flows, assuming use of t..

  Dominated by a combination of u.s. and non-u.s. firms

Dominated by a combination of U.S. and non-U.S. firms

  A companys flexible budget for 17000 units of production

a companys flexible budget for 17000 units of production showed sales 68000 variable costs 25500 and fixed costs 20000.

  What sales revenue would have to be generated

The records of Kennett Company show a contribution margin ratio of 20%. The company desires to earn a profit of $50,000 and has fixed costs of $100,000. What sales revenue would have to be generated in order to earn the desired profit?

  Kohlman company began its operations on march 31 of the

kohlman company began its operations on march 31 of the current year. projected manufacturing costs for the first three

  Components of entity system of internal control

An auditor is required to obtain a sufficient understanding of each of the components of an entity's system of internal control to plan the audit of the entity's financial statements and to assess control risk for the assertions embodied in the ac..

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