Return on equity, Financial Management

Assignment Help:

Your quantitative analysis will describe the financial strength of you company using the metrics we discussed in class. You may use other measures at your discretion, but the following are required to be addressed in your presentation and the accompanying literature and must not only be quantified but described.

  • Liquidity- use whichever ratio you think is best
  • Return on equity
  • Return on assets
  • Dividend payout ratio (if it pays a dividend, is it sustainable based on net income?)
  • Price/earnings ratio (especially compared to industry peers)
  • Stock price performance

Trends

Does your company exhibit any trends over the past 3-5 years? Has the profit margin steadily grown to show greater levels of management efficiency? Has your P/E ratio dropped, signifying a potentially optimum time to invest in your company? Have your debt levels and interest rate expense been reduced? If so, why is that a good sign to potential investors?

Industry Comparisons

Does your company compare favorably or unfavorably with industry peers? Is your P/E ratio higher or lower than your peers, and what does that mean to investors? If your P/E is higher, does the growth potential of your company warrant the higher stock price? If your P/E is lower, does management have a plan to re-charge growth going forward or will your stock linger at a lower value?


Related Discussions:- Return on equity

What is business combinations, Q. What is Business Combinations? Combin...

Q. What is Business Combinations? Combining of two entities. Under PURCHASE METHOD OFACCOUNTING, one entity is deemed to attain another and there is a new basis of accountingfo

Income statement & balance sheet, in 2002, jackson incorporated had gross s...

in 2002, jackson incorporated had gross sales of $4269200. for 2002, management estimated that returns and allowances would be 5 percent of gross sales. what did jackson report as

The value of the quick ratio, Dev's Spa has cash of $50, accounts receivabl...

Dev's Spa has cash of $50, accounts receivable of $60, accounts payable of $200, inventory of $150 and accured expenses of $100. What will be the value of the quick ratio?

Advanced financial management, QUESTION 1 [25 marks] Xelo Ltd, whose curren...

QUESTION 1 [25 marks] Xelo Ltd, whose current sales consist of fixed operating costs of R140 000 and variable operating costs equal to 22% of sales, has made the following two sale

Diffrence between present values of future cash, Q. Diffrence between prese...

Q. Diffrence between present values of future cash ? The difference among the present values of future cash inflows generated by an asset and its cost is known as net present v

State what is average cost, State what is Average cost Average cost rep...

State what is Average cost Average cost represents weighted average of the costs of each source of fundsemployed by enterprise, weights being the relative share of each source

Define risk relate with large amount of short term financing, What are the ...

What are the risks related with using a large amount of short-term financing for working capital? Using a large amount of short-term financing usually permits funds to be raised

Wha is asset turnover- performance ratios, Wha is Asset turnover- performan...

Wha is Asset turnover- performance ratios Asset turnover = Turnover/ Total assets or capital employed This demonstrates how much sales are generated for every £1 of capit

Working capital mini qs, Q. Working capital mini Qs? During January 20X...

Q. Working capital mini Qs? During January 20X4, Gazza Ltd made credit sales of £30,000 that have a 25% mark up. It also purchased £20,000 of inventories on credit. Calculat

Deficiency in operation, Deficiency in Operation - This exists when a prope...

Deficiency in Operation - This exists when a properly designed control doesn't operate as designed or when person performing the control doesn't possess the necessary authority or

Write Your Message!

Captcha
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