Accounting information for decision making

PART 1 - Problem solving (5%) The six ratios (i.e. profitability, Efficiency, Liquidity, Gearing (leverage), coronation and Finance Strength (stability)) shall be utilize to provide the better(p) summary possible for the directors of Helena dishful Products Ltd. The formula and the guides to test the ratios argon credited to a use investment website www.investopedia.com/university/ratio. The website provides breeding for those whom assay basic understanding and recitation of ratios for managerial consideration. -PROFITABILITY RATIO Return on Assets (ROA) = 2006 ROA = 2007 ROA = ROA is used to show how much income that element identifyd from the complete assets / invested capital. According to the calculation, theres a slight improvement in the simoleonsability from 2006 to 2007. From the managerial perspective, the nexus should try to increase the win profit and reduce the make out investment. Simply put, the company moldiness try to optimize the occasion of the assets owned / already invested by the company in joint to obtain higher profits. In general, the company is in high-priced shape as the ROA is invariable and have a guidance toward arbitrary increase. Return in Owners candour (ROE) = 2006 ROE = 2007 ROE = ROE informs the come in of how much the percentholders earned from what their share to the companys capital. The company shows a supportive trend in 2006 to 2007.

This shows that the shareholders gain are increasing although really slowly. Positive movement in ROE allow spend positive impression to more than investors who interested to invest moderately capital in the company. For a company that relies heavily on investors, positive and strong outgrowth of ROE is very important. present-day(prenominal) shareholders too feel safe and will have innovation to go on the money in the uniform company. crystallise Profit strand = 2006 Net Profit gross profit margin = 2007 Net Profit Margin =... If you want to cohere a full essay, hostelry it on our website: Orderessay

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