This document provides financial ratio analyses for a company for the years 2005-2007. It includes liquidity ratios like current ratio and quick ratio which were between 1.5-1.7, indicating the company's liquidity was decreasing each year. Solvency ratios like debt to equity and debt to total funds were around 0.05-0.06. Profitability ratios such as gross profit, net profit and operating profit ratios were declining each year from 2005 to 2007, indicating decreasing profit margins. Activity ratios including capital turnover, fixed asset turnover and debtors turnover also showed declining or fluctuating trends over the periods analyzed.
This document contains an income statement and balance sheet for three years (2007-2009) for a company, as well as various financial ratios calculated from the data. The ratios show that in 2009, the company's current ratio declined, indicating potential problems paying bills on time. However, other liquidity and profitability ratios improved from 2008 to 2009, such as gross profit margin and operating profit margin, suggesting increased efficiency. Some ratios declined from 2008 to 2009, such as return on assets and equity, showing less efficient use of assets to generate profits.
The document discusses executive compensation policies and provides an overview of different compensation elements such as salary, bonuses, and equity-based compensation. It presents empirical evidence on the relationship between various compensation structures and company and executive performance. The document also examines compensation cases at BMW and Shell, discussing whether the structures adequately incentivize executives or could be improved. It concludes that the optimal compensation package balances different elements to align executive and shareholder interests while minimizing agency problems.
This document provides solutions to 10 illustrations related to calculating the cost of various sources of capital such as debt, equity and preference shares.
In the first illustration, the document calculates the cost of irredeemable debt issued at par, premium and discount by determining the interest rate after accounting for tax. The second illustration does the same calculation for redeemable debentures.
Subsequent illustrations calculate costs for alternative modes of debt, irredeemable and redeemable preference shares, equity using the dividend price approach and earnings price approach. The last two illustrations value equity shares using the dividend discount model and present value of future dividend flows approach.
The document thus provides step-by-step workings and solutions to calculate
working capital ch solution financial management ....mohsin mumtazmianmohsinmumtazshb
The document discusses solutions to problems related to working capital and current asset management. It addresses topics such as cash conversion cycle, economic order quantity, accounts receivable management, and cash management techniques. The problems calculate financial metrics and evaluate strategies for reducing costs and improving profitability within the constraints of various assumptions provided in the questions.
cost of capital .....ch ...of financial management ..solution by MIAN MOHSIN ...mianmohsinmumtazshb
The document provides solutions to problems from Chapter 11 on the cost of capital.
It calculates the cost of various sources of capital such as debt, preferred stock, and common equity. It also calculates the weighted average cost of capital (WACC) using different capital structure weights.
Key calculations include:
1) Calculating the cost of debt using the yield to maturity method and the approximation method.
2) Calculating the cost of preferred stock as the dividend yield.
3) Calculating the cost of common equity using the capital asset pricing model.
4) Calculating the WACC using both book value and market value weights for the capital structure.
5) Exploring how
The document contains solutions to practice problems related to mergers and acquisitions. Problem 17-1 discusses the tax effects of an acquisition, finding that the tax savings are less than the cost of the merger. Problem 17-2 also examines tax effects, determining that a proposed merger is recommended based on positive net benefit. Problem 17-3 evaluates the present value of tax benefits for two potential acquisition targets.
This chapter discusses topics related to investment, time, and capital markets. It introduces concepts such as stocks versus flows, present discounted value, the value of bonds, and the net present value criterion for capital investment decisions. It also covers adjustments for risk, including diversifiable and nondiversifiable risk. The capital asset pricing model is presented as a way to measure nondiversifiable risk using an asset's beta. Worked examples demonstrate how to calculate present values, bond yields, and investment project net present values.
This document discusses dividend decision and theories. It defines dividends as the portion of profits distributed to shareholders. There are different types of dividends such as interim, final, stock, and scrip dividends. Dividend decision is influenced by legal provisions and is treated as a financing decision aimed at wealth maximization. The document discusses various dividend theories including the residual dividend policy, Modigliani-Miller's irrelevance theory, Walter's model, Gordon's model, and their underlying assumptions. It also covers factors influencing dividend policy and different approaches a company can take to its dividend policy.
This document contains an income statement and balance sheet for three years (2007-2009) for a company, as well as various financial ratios calculated from the data. The ratios show that in 2009, the company's current ratio declined, indicating potential problems paying bills on time. However, other liquidity and profitability ratios improved from 2008 to 2009, such as gross profit margin and operating profit margin, suggesting increased efficiency. Some ratios declined from 2008 to 2009, such as return on assets and equity, showing less efficient use of assets to generate profits.
The document discusses executive compensation policies and provides an overview of different compensation elements such as salary, bonuses, and equity-based compensation. It presents empirical evidence on the relationship between various compensation structures and company and executive performance. The document also examines compensation cases at BMW and Shell, discussing whether the structures adequately incentivize executives or could be improved. It concludes that the optimal compensation package balances different elements to align executive and shareholder interests while minimizing agency problems.
This document provides solutions to 10 illustrations related to calculating the cost of various sources of capital such as debt, equity and preference shares.
In the first illustration, the document calculates the cost of irredeemable debt issued at par, premium and discount by determining the interest rate after accounting for tax. The second illustration does the same calculation for redeemable debentures.
Subsequent illustrations calculate costs for alternative modes of debt, irredeemable and redeemable preference shares, equity using the dividend price approach and earnings price approach. The last two illustrations value equity shares using the dividend discount model and present value of future dividend flows approach.
The document thus provides step-by-step workings and solutions to calculate
working capital ch solution financial management ....mohsin mumtazmianmohsinmumtazshb
The document discusses solutions to problems related to working capital and current asset management. It addresses topics such as cash conversion cycle, economic order quantity, accounts receivable management, and cash management techniques. The problems calculate financial metrics and evaluate strategies for reducing costs and improving profitability within the constraints of various assumptions provided in the questions.
cost of capital .....ch ...of financial management ..solution by MIAN MOHSIN ...mianmohsinmumtazshb
The document provides solutions to problems from Chapter 11 on the cost of capital.
It calculates the cost of various sources of capital such as debt, preferred stock, and common equity. It also calculates the weighted average cost of capital (WACC) using different capital structure weights.
Key calculations include:
1) Calculating the cost of debt using the yield to maturity method and the approximation method.
2) Calculating the cost of preferred stock as the dividend yield.
3) Calculating the cost of common equity using the capital asset pricing model.
4) Calculating the WACC using both book value and market value weights for the capital structure.
5) Exploring how
The document contains solutions to practice problems related to mergers and acquisitions. Problem 17-1 discusses the tax effects of an acquisition, finding that the tax savings are less than the cost of the merger. Problem 17-2 also examines tax effects, determining that a proposed merger is recommended based on positive net benefit. Problem 17-3 evaluates the present value of tax benefits for two potential acquisition targets.
This chapter discusses topics related to investment, time, and capital markets. It introduces concepts such as stocks versus flows, present discounted value, the value of bonds, and the net present value criterion for capital investment decisions. It also covers adjustments for risk, including diversifiable and nondiversifiable risk. The capital asset pricing model is presented as a way to measure nondiversifiable risk using an asset's beta. Worked examples demonstrate how to calculate present values, bond yields, and investment project net present values.
This document discusses dividend decision and theories. It defines dividends as the portion of profits distributed to shareholders. There are different types of dividends such as interim, final, stock, and scrip dividends. Dividend decision is influenced by legal provisions and is treated as a financing decision aimed at wealth maximization. The document discusses various dividend theories including the residual dividend policy, Modigliani-Miller's irrelevance theory, Walter's model, Gordon's model, and their underlying assumptions. It also covers factors influencing dividend policy and different approaches a company can take to its dividend policy.
Presentation of Swedbank's first quarter 2012 results Swedbank
Swedbank reported strong first quarter results with profit increasing significantly year-over-year. Cost reductions were on track while credit quality remained stable. Business activity was healthy across most areas though net interest income pressure continued in the Baltic region. Swedbank remains well capitalized with a capital ratio of 15.9% and is focused on further strengthening asset quality and reducing risk-weighted assets.
MMS - initiation of equity research reportGeorge Gabriel
This document summarizes a stock analysis report on McMillan Shakespeare (MMS) from Evans & Partners. The report maintains a positive recommendation on MMS. In the first half of 2012, MMS's Remuneration Services segment saw strong earnings growth while its Asset Management segment remained flat. The report upgrades its valuation of MMS from $10.40 to $11.27 per share based on modest earnings forecast revisions for fiscal years 2012-2014. Key growth opportunities for MMS include cross-selling products, new financing programs, and potential outsourcing contracts.
The document provides examples of multiple choice and problem solving questions related to ratio analysis. The multiple choice questions test understanding of various financial ratios and their interpretation. The problem solving questions provide financial ratio data for a company over several years and ask the reader to analyze the company's liquidity, asset management, and solvency based on the ratios. Sample answers are also provided that demonstrate how to use the ratio data to fully but concisely address the questions.
1) This document discusses various topics related to common stock, including how stock represents ownership in a company and how stockholders elect directors who then hire management. It also discusses different types of stock like classified stock and tracking stock.
2) It provides an overview of how to value common stock using different approaches like the dividend growth model and comparing multiples of comparable firms. It includes an example of valuing a stock using the constant growth model.
3) The document discusses the cost of capital components including debt, preferred stock, and common equity. It provides examples of how to calculate the costs of each component.
- The cost of capital is the minimum required rate of return for a project given its riskiness, while the firm's cost of capital is the weighted average required return across all projects.
- The cost of capital is used for investment decisions, debt policy design, and evaluating management performance.
- It represents the expected return forgone by investing in a project rather than the next best alternative of similar risk. Various capital sources have different costs depending on their risk.
- The weighted average cost of capital (WACC) is calculated by weighting the costs of different capital sources by their proportion of the total capital structure.
This document discusses dividend policy and the various theories around it. It defines dividends and discusses Walter's model and Gordon's model, which propose that dividend policy affects firm value. It also covers the irrelevance theories of Modigliani-Miller and the traditional approach, which argue that dividend policy does not impact value. The document provides formulas for the different models and discusses their assumptions and criticisms.
The document analyzes various financial ratios of a company over three years. It shows that the current ratio decreased in 2006-2007 but increased in 2007-2008, indicating instability in short-term solvency. The acid test ratio and debt-equity ratio also fluctuated, confirming issues with short-term liquidity and long-term solvency positions. Inventory and debtors turnover ratios increased in 2007-2008 but fell in 2008-2009, suggesting inadequate inventory levels and cash flow problems due to increased credit sales.
This document provides a summary of Dell's business and financial ratios for 2010-2011. It analyzes Dell's profitable stability and financial stability based on key metrics like return on equity, net profit margin, gross profit margin, selling/general expense ratios, working capital, total debt, inventory/debtor turnover, and interest coverage. While some metrics like return on equity, net profit margin and interest coverage improved from 2010-2011, others like gross profit margin, selling/general expense ratios, and working capital ratio indicate challenges in controlling costs and debt levels. Based on this analysis, the document provides an investment recommendation for Dell.
1) The document analyzes stock performance of HDFC Bank over several years through various financial ratios such as current ratio, operating ratio, return on capital employed, earnings per share, and dividends per share.
2) Interviews with stock analysts suggest that HDFC Bank remains one of the better stocks to hold given its strong earnings growth and performance relative to other banks. Analysts believe the stock has potential to exceed all-time highs and outperform the broader banking sector.
3) HDFC Bank's current ratio, returns, and profits have largely remained steady or increased over the past few years according to the ratio analysis, suggesting sound financial health and efficient operations.
presentation on Integrative Case of Track Software Ltd Pritom27
Stanley started a software firm called Track Software Ltd with Rs. 100,000 in equity and debt. He developed a cost accounting program but needed to hire a software developer to complete it. While profits have increased over six years, an analysis of the firm's 2006 financials shows liquidity, activity, and profitability ratios below industry averages. Hiring the developer could improve ratios and sales, in line with Stanley's goal of maximizing profits, though it may temporarily lower earnings per share. Overall, the firm is not performing as well as peers but hiring could boost potential if sales increase as expected.
This document discusses ratio analysis and various financial ratios that can be calculated and analyzed for a company. It includes calculations of current and quick ratios, inventory turnover, days sales outstanding, asset turnover ratios, debt ratios, profitability ratios, and market value ratios for the company's forecasted 2005 financial statements. Key ratios are then compared to industry averages to identify areas of strength and weakness for the company.
The document analyzes the financial performance of Dhaka Bank Limited (DBL) over several years using various financial ratios. It finds that DBL's current ratio, return on equity, profit margin, earnings per share, and times interest earned have been improving, showing better management. However, the acid-test ratio, dividend per share, and price-earnings ratio need improvement. Overall, the analysis indicates DBL has generally strengthened its financial position but still has some areas to optimize.
Celanese Corporation reported strong third quarter results, with net sales increasing 10% to $1.685 billion compared to the prior year. Operating profit more than doubled to $200 million, driven by increased volumes, higher margins, and lower charges. The company adjusted its full year earnings per share outlook to a range of $2.70 to $2.80 per share, towards the top end of its previous guidance. All business segments saw increased sales and profits compared to the third quarter of 2005.
Ameriprise Financial reported first quarter 2006 results with the following highlights:
- Net income was $145 million compared to $175 million in the prior year quarter. Adjusted earnings, which exclude certain one-time items, increased 17% to $189 million.
- Revenues grew 6% to $1.9 billion. Adjusted revenues grew 10%, driven by 17% growth in management, financial advice, and service fees.
- Adjusted return on equity increased to 10.4% from 10.2% in the previous quarter.
- The company repurchased $275 million of its shares during the quarter and authorized up to $750 million additional in share repurchases
The debt service coverage ratio (DSCR) is calculated as:
EBIT / (Interest + Principal repayment)
In year 2:
EBIT = Rs. 16.80 lakhs
Interest = Rs. 8.80 lakhs
Principal repayment = Rs. 10 lakhs
DSCR = EBIT / (Interest + Principal repayment)
= Rs. 16.80 lakhs / (Rs. 8.80 lakhs + Rs. 10 lakhs)
= Rs. 16.80 lakhs / Rs. 18.80 lakhs
= 0.89
Therefore, the debt service coverage ratio in year 2 is 0.89.
Now I am going to share some of the Ratio values of the company which I obtained from the financial reports of last five years i.e Current Ratio, Quick Ratio, Cash Ratio, Return on Asset Ratio and Return on Equity Ratio.
The document discusses valuation and exit strategies for family enterprises. It outlines the importance of having an exit strategy when owning a business. The presentation then covers various exit alternatives, including retaining ownership, selling the business, going public, or forming an income trust. It also discusses potential purchasers such as management, financial buyers, or strategic buyers. Additional sections provide details on management buyouts, financial and strategic buyers, preparing the company for sale, business valuation methods, and a case study example.
The document discusses cashflow budgets for startups. It provides an example of transforming an operating budget into a cashflow budget by transferring revenue and cost items to show monthly cash inflows and outflows. However, the cashflow budget must also account for additional payments like withdrawals, deposits, and large purchases not captured in the operating budget. Delayed customer payments and supplier payment terms further complicate the cashflow projections. The cashflow budget is necessary to determine if and when additional financing may be required beyond initial startup funding.
The document analyzes the financial statements of an organization for the years 2006 and 2007. It provides vertical analysis of the balance sheet and income statement to examine changes in percentages of items from the previous year. It also performs ratio analysis to assess the organization's liquidity, solvency, asset management and profitability. Key ratios like current ratio, debt ratio and return on assets are calculated and interpreted to evaluate the organization's financial position.
Fifth Third Bancorp reported a net loss for Q2 2008 due to charges related to leveraged leases. Excluding these charges, pre-tax earnings were up 16% year-over-year due to increases in noninterest income and average loans. However, credit costs increased significantly due to deteriorating economic conditions, particularly in real estate loans in Florida and Michigan. In response, Fifth Third raised capital levels and reduced the common dividend to strengthen its position during the economic downturn.
Fifth Third Bancorp reported a net loss for Q2 2008 due to charges related to leveraged leases. Excluding these charges, pre-tax earnings were up 16% year-over-year due to increases in noninterest income and loans. However, credit costs rose significantly due to deteriorating economic conditions, particularly in real estate loans in Florida and Michigan. In response, Fifth Third raised capital levels and reduced dividends to strengthen its position for potential future losses.
Presentation of Swedbank's first quarter 2012 results Swedbank
Swedbank reported strong first quarter results with profit increasing significantly year-over-year. Cost reductions were on track while credit quality remained stable. Business activity was healthy across most areas though net interest income pressure continued in the Baltic region. Swedbank remains well capitalized with a capital ratio of 15.9% and is focused on further strengthening asset quality and reducing risk-weighted assets.
MMS - initiation of equity research reportGeorge Gabriel
This document summarizes a stock analysis report on McMillan Shakespeare (MMS) from Evans & Partners. The report maintains a positive recommendation on MMS. In the first half of 2012, MMS's Remuneration Services segment saw strong earnings growth while its Asset Management segment remained flat. The report upgrades its valuation of MMS from $10.40 to $11.27 per share based on modest earnings forecast revisions for fiscal years 2012-2014. Key growth opportunities for MMS include cross-selling products, new financing programs, and potential outsourcing contracts.
The document provides examples of multiple choice and problem solving questions related to ratio analysis. The multiple choice questions test understanding of various financial ratios and their interpretation. The problem solving questions provide financial ratio data for a company over several years and ask the reader to analyze the company's liquidity, asset management, and solvency based on the ratios. Sample answers are also provided that demonstrate how to use the ratio data to fully but concisely address the questions.
1) This document discusses various topics related to common stock, including how stock represents ownership in a company and how stockholders elect directors who then hire management. It also discusses different types of stock like classified stock and tracking stock.
2) It provides an overview of how to value common stock using different approaches like the dividend growth model and comparing multiples of comparable firms. It includes an example of valuing a stock using the constant growth model.
3) The document discusses the cost of capital components including debt, preferred stock, and common equity. It provides examples of how to calculate the costs of each component.
- The cost of capital is the minimum required rate of return for a project given its riskiness, while the firm's cost of capital is the weighted average required return across all projects.
- The cost of capital is used for investment decisions, debt policy design, and evaluating management performance.
- It represents the expected return forgone by investing in a project rather than the next best alternative of similar risk. Various capital sources have different costs depending on their risk.
- The weighted average cost of capital (WACC) is calculated by weighting the costs of different capital sources by their proportion of the total capital structure.
This document discusses dividend policy and the various theories around it. It defines dividends and discusses Walter's model and Gordon's model, which propose that dividend policy affects firm value. It also covers the irrelevance theories of Modigliani-Miller and the traditional approach, which argue that dividend policy does not impact value. The document provides formulas for the different models and discusses their assumptions and criticisms.
The document analyzes various financial ratios of a company over three years. It shows that the current ratio decreased in 2006-2007 but increased in 2007-2008, indicating instability in short-term solvency. The acid test ratio and debt-equity ratio also fluctuated, confirming issues with short-term liquidity and long-term solvency positions. Inventory and debtors turnover ratios increased in 2007-2008 but fell in 2008-2009, suggesting inadequate inventory levels and cash flow problems due to increased credit sales.
This document provides a summary of Dell's business and financial ratios for 2010-2011. It analyzes Dell's profitable stability and financial stability based on key metrics like return on equity, net profit margin, gross profit margin, selling/general expense ratios, working capital, total debt, inventory/debtor turnover, and interest coverage. While some metrics like return on equity, net profit margin and interest coverage improved from 2010-2011, others like gross profit margin, selling/general expense ratios, and working capital ratio indicate challenges in controlling costs and debt levels. Based on this analysis, the document provides an investment recommendation for Dell.
1) The document analyzes stock performance of HDFC Bank over several years through various financial ratios such as current ratio, operating ratio, return on capital employed, earnings per share, and dividends per share.
2) Interviews with stock analysts suggest that HDFC Bank remains one of the better stocks to hold given its strong earnings growth and performance relative to other banks. Analysts believe the stock has potential to exceed all-time highs and outperform the broader banking sector.
3) HDFC Bank's current ratio, returns, and profits have largely remained steady or increased over the past few years according to the ratio analysis, suggesting sound financial health and efficient operations.
presentation on Integrative Case of Track Software Ltd Pritom27
Stanley started a software firm called Track Software Ltd with Rs. 100,000 in equity and debt. He developed a cost accounting program but needed to hire a software developer to complete it. While profits have increased over six years, an analysis of the firm's 2006 financials shows liquidity, activity, and profitability ratios below industry averages. Hiring the developer could improve ratios and sales, in line with Stanley's goal of maximizing profits, though it may temporarily lower earnings per share. Overall, the firm is not performing as well as peers but hiring could boost potential if sales increase as expected.
This document discusses ratio analysis and various financial ratios that can be calculated and analyzed for a company. It includes calculations of current and quick ratios, inventory turnover, days sales outstanding, asset turnover ratios, debt ratios, profitability ratios, and market value ratios for the company's forecasted 2005 financial statements. Key ratios are then compared to industry averages to identify areas of strength and weakness for the company.
The document analyzes the financial performance of Dhaka Bank Limited (DBL) over several years using various financial ratios. It finds that DBL's current ratio, return on equity, profit margin, earnings per share, and times interest earned have been improving, showing better management. However, the acid-test ratio, dividend per share, and price-earnings ratio need improvement. Overall, the analysis indicates DBL has generally strengthened its financial position but still has some areas to optimize.
Celanese Corporation reported strong third quarter results, with net sales increasing 10% to $1.685 billion compared to the prior year. Operating profit more than doubled to $200 million, driven by increased volumes, higher margins, and lower charges. The company adjusted its full year earnings per share outlook to a range of $2.70 to $2.80 per share, towards the top end of its previous guidance. All business segments saw increased sales and profits compared to the third quarter of 2005.
Ameriprise Financial reported first quarter 2006 results with the following highlights:
- Net income was $145 million compared to $175 million in the prior year quarter. Adjusted earnings, which exclude certain one-time items, increased 17% to $189 million.
- Revenues grew 6% to $1.9 billion. Adjusted revenues grew 10%, driven by 17% growth in management, financial advice, and service fees.
- Adjusted return on equity increased to 10.4% from 10.2% in the previous quarter.
- The company repurchased $275 million of its shares during the quarter and authorized up to $750 million additional in share repurchases
The debt service coverage ratio (DSCR) is calculated as:
EBIT / (Interest + Principal repayment)
In year 2:
EBIT = Rs. 16.80 lakhs
Interest = Rs. 8.80 lakhs
Principal repayment = Rs. 10 lakhs
DSCR = EBIT / (Interest + Principal repayment)
= Rs. 16.80 lakhs / (Rs. 8.80 lakhs + Rs. 10 lakhs)
= Rs. 16.80 lakhs / Rs. 18.80 lakhs
= 0.89
Therefore, the debt service coverage ratio in year 2 is 0.89.
Now I am going to share some of the Ratio values of the company which I obtained from the financial reports of last five years i.e Current Ratio, Quick Ratio, Cash Ratio, Return on Asset Ratio and Return on Equity Ratio.
The document discusses valuation and exit strategies for family enterprises. It outlines the importance of having an exit strategy when owning a business. The presentation then covers various exit alternatives, including retaining ownership, selling the business, going public, or forming an income trust. It also discusses potential purchasers such as management, financial buyers, or strategic buyers. Additional sections provide details on management buyouts, financial and strategic buyers, preparing the company for sale, business valuation methods, and a case study example.
The document discusses cashflow budgets for startups. It provides an example of transforming an operating budget into a cashflow budget by transferring revenue and cost items to show monthly cash inflows and outflows. However, the cashflow budget must also account for additional payments like withdrawals, deposits, and large purchases not captured in the operating budget. Delayed customer payments and supplier payment terms further complicate the cashflow projections. The cashflow budget is necessary to determine if and when additional financing may be required beyond initial startup funding.
The document analyzes the financial statements of an organization for the years 2006 and 2007. It provides vertical analysis of the balance sheet and income statement to examine changes in percentages of items from the previous year. It also performs ratio analysis to assess the organization's liquidity, solvency, asset management and profitability. Key ratios like current ratio, debt ratio and return on assets are calculated and interpreted to evaluate the organization's financial position.
Fifth Third Bancorp reported a net loss for Q2 2008 due to charges related to leveraged leases. Excluding these charges, pre-tax earnings were up 16% year-over-year due to increases in noninterest income and average loans. However, credit costs increased significantly due to deteriorating economic conditions, particularly in real estate loans in Florida and Michigan. In response, Fifth Third raised capital levels and reduced the common dividend to strengthen its position during the economic downturn.
Fifth Third Bancorp reported a net loss for Q2 2008 due to charges related to leveraged leases. Excluding these charges, pre-tax earnings were up 16% year-over-year due to increases in noninterest income and loans. However, credit costs rose significantly due to deteriorating economic conditions, particularly in real estate loans in Florida and Michigan. In response, Fifth Third raised capital levels and reduced dividends to strengthen its position for potential future losses.
15000
10000
5000
0
2005 2006 2007
- The financial ratios of SRM are projected to improve in 2006 and 2007 compared to 2005. However, they remain below industry averages.
- While liquidity, leverage, and asset management ratios improve, profitability ratios only marginally increase and remain poor.
- A key weakness is low profit margins, despite improvements in sales, inventory management, and debt repayment. Increased expenses constrain profits.
- Repaying debt improves financial stability in the short term, but sustained profitability is still lacking for long term financial health.
Working capital management and the importanceMohammedAshik64
The document analyzes working capital management at TTPL from 2017-2021. Key findings include:
- TTPL's working capital was negative and decreasing, indicating insufficient funds for daily operations.
- Current and quick ratios were below standard levels, showing low liquidity.
- Debt-equity ratios improved in 2021 but were otherwise unsatisfactory.
- Various turnover and profitability ratios declined over time, demonstrating poor performance.
The document suggests TTPL focus on improving sales, inventory management, credit policies, and operational efficiency to enhance working capital management and financial health.
The document provides financial results for Ameriprise Financial for Q3 2006. Key points:
- Net income was $174M, up 39% from prior year. Adjusted earnings excluding one-time costs were $231M, up 29%.
- Revenues grew 6% to $2B driven by higher fees from increased assets in wrap accounts and variable annuities.
- Expenses grew slower than revenues. Compensation increased due to business growth and incentives. Interest expenses fell due to lower fixed annuity balances.
- Assets under management grew 5% to $440B despite selling its recordkeeping business. Strong flows continued in wrap accounts and variable annuities.
The document summarizes Credit Suisse's quarterly results for Q2 2003. Key points include:
- Credit Suisse Financial Services reported a net profit of CHF 829 million for Q2 2003, up 21% from Q1 2003, driven by improved results across all business segments.
- Private Banking saw a 9% increase in operating income and improvement in cost/income ratio. Asset under management grew by CHF 37 billion.
- Corporate & Retail Banking operating income was up 7% from previous quarter with a lower cost/income ratio of 64.8%.
- Life & Pensions administration costs were down 17% from the prior year though gross premiums written declined 3
Raytheon Reports 2006 Third Quarter Resultsfinance12
The document provides an earnings summary and outlook for Q3 2006 and full year 2006-2007. It summarizes that earnings per share increased 41% in Q3 2006, bookings remained strong, and guidance was increased for EPS, bookings, operating cash flow and ROIC. The summary also mentions that net debt declined to its lowest point in over 11 years and over 5.5 million shares were repurchased in the quarter.
1) The document discusses different types of price discrimination where firms set different prices for the same product to different customer groups.
2) It provides examples of price discrimination practices in markets and their effects on consumer surplus, along with examples like dumping by China and practices by companies like Cadbury and Big Bazaar.
3) The key types of price discrimination discussed are first degree, second degree, and third degree price discrimination and their impacts on firms' costs and revenues.
Status can be ascribed, achieved, or desired. A status symbol is a visible indicator of one's social position and status. The top 10 status symbols include educational degree, car, home location, cell phone, child's school/college, credit card, air conditioner, holiday abroad, job/business, and club membership. Marketers can target upward mobility by offering upper class products to the middle class.
The document provides a report on consumer behavior related to the book "It Happened in India" by Kishore Biyani. It acknowledges the help received from professors and parents in preparing the report. The report contains 5 key consumer insights from the book: 1) Indian consumers have a strategic approach to shopping; 2) Indians seek savings and value; 3) Impulsive buying is common in India; 4) Gujarati consumers buy staples in bulk and demand discounts; 5) Indian women are very cost sensitive and negotiate well.
Asian economies have played a major role in global economic growth over the past decade, accounting for 25-50% of global growth. They have sustained strong growth and weathered the global financial crisis well. However, their continued growth is contributing to high global commodity and food prices, adding inflationary pressures worldwide. Looking ahead, Asian economies are well positioned to help lead the global recovery given their large foreign reserves and ability to continue domestic growth through public spending programs.
This presentation discusses employee participation in organizations and its benefits. It outlines various forms of participation like involvement, quality improvement, and customer service. The presentation provides examples of participation approaches and methods followed at TCS. It concludes that employee participation provides organizations with a competitive advantage through improved quality, service, and involvement.
The document discusses Tata Sky's losses and strategies in the DTH market. It notes that while Tata Sky reported losses of Rs. 53 crore in FY06 and Rs. 815 crore in FY07, growing to Rs. 864 crore in FY08, totaling over Rs. 1732 crore in losses. It asks if continuing spending despite losses is intelligent, and if Tata Sky will lose their "red ink" in the future. Tata Sky's current strategies are identified as gaining market share, price cuts, increasing average revenue per customer, taking calculated risks, and planning for/budgeting losses.
The document appears to be about teamwork and collaboration. It discusses various teams that worked together effectively like Larry Page and Sergey Brin, as well as Google collaborating with other companies like Visa and Mozilla. It provides examples of how teamwork can increase efficiency and productivity. The key benefits of teamwork highlighted are support, speed, skills, satisfaction and creativity. Proverbs and quotes about the importance of teamwork and coming together are also included.
The document discusses Bata's history and current strategies. It covers Bata's beginnings, financial performance, product offerings, SWOT analysis, hurdles faced, current market analysis and strategies, corporate social responsibility efforts, future scenarios, and their mission to shrink the commercial globe. The document was authored by Ankit Gupta, Ashish Diwedi, Bhuvneshvar Shneya, Chiteresh Girdhar, and Aakash Jain.
This commercial law presentation discusses the rights of an unpaid seller under the Sale of Goods Act of 1930. It covers an unpaid seller's right of lien, right to stop goods in transit, and right of resale when property has passed to the buyer. It also examines an unpaid seller's rights against the buyer personally and in auction sales when property has not passed to the buyer. The presentation was created by Ankit Gupta, Rohit Nayyar, Urvashi Arya, Yajnaseni Mehtab, and Tasavur Zaidi.
The document provides an overview of Synergies Care Limited (S.C.L), a proposed pharmaceutical manufacturing company in India. S.C.L will manufacture generic drugs at affordable prices on a 10-acre plot in Gurgaon, Haryana. It aims to attract over 1,000 weekday and 3,000 weekend customers in its first year, with sales forecasts of 18-30 crores. S.C.L will be privately owned and produce a wide range of medicines, with a focus on increasing its generics business through potential acquisitions in India and other markets.
The document provides a comparative study of Idea and Vodafone cellular companies in India. It discusses their product profiles, services, marketing strategies and advertising approaches. Idea offers services like EDGE technology, value added services, and targets different customer segments through tariff plans. Vodafone is a global company operating in India through subsidiaries, offering various communication services to consumers and businesses. Both companies focus on network quality and value added features to attract and retain customers in the competitive Indian market.
Tata Sky, a joint venture between Tata Group and Star India, launched India's second DTH service in 2006. It gained 1.5 million subscribers within 16 months by initially offering connections at a subsidized price of Rs. 4000. However, analysts estimate that Tata Sky loses Rs. 5000 per new connection and does not recover costs for around 50 months. As a result, Tata Sky has reported significant losses each year since launching, including Rs. 864 Crore in FY2008. With increased competition from new entrants, Tata Sky's subsidies and losses per new customer are expected to rise by at least 30%. Unless it can increase revenues and reduce costs, Tata Sky's losses are projected to
This document provides an overview of computer networking including definitions of different types of networks like LAN, WAN, MAN, and wireless networks. It discusses networking methods like peer-to-peer and client-server models. It also summarizes the internet, intranet, network topology, protocols, network architecture, browsing, and web search engines.
This long document discusses the history and growth of Google from its founding by Larry Page and Sergey Brin as students at Stanford University in 1998. It details their early search technology developments, receiving funding from Andy Bechtolsheim and David Cheriton, and hiring Eric Schmidt as CEO. The document outlines Google's many innovations and product expansions over the years that led to tremendous financial success, as well as their focus on renewable energy, genomics, and hiring great people to drive continued innovation.
This document praises the purple cow and argues that being remarkable like a purple cow can transform a business. It notes that innovative products like the Google, iPhone, iPod, and Playstation were purple cows that stood out. The document recommends investing in new ideas, exploring potential markets, analyzing results, and changing if results are not fruitful. The conclusion restates this advice and quotes that businesses need to change what they have always done if they want different results.
Nokia started as a wood-pulp mill in 1865 in Finland. It eventually became a telecommunications company and the world's largest manufacturer of mobile phones, holding a 40% global market share in 2007. Nokia produces phones for all major market segments and protocols. It is also a major supplier of telecommunications network equipment and has offices worldwide.
From 1979 to 2002, Anil Moolchandani grew Archies greetings and gifts ltd. into Archies Limited, expanding their product range from song books and posters to greeting cards, chocolates, jewelry, and other gifts. By 2002, Archies Limited had over 50% of the greeting card market share in India with 2000 outlets across 120 cities in 6 countries. To maintain growth, the company pursued a franchise strategy and launched e-commerce initiatives like their online portal and E-greetings to reach more customers.
Hong Kong has a capitalist government and was a British colony until 1997. Its official languages are Chinese and English and it serves as an economic bridge between Western capitalism and Eastern communism. In business culture, relationships and etiquette are highly valued - greetings, gift giving, and business cards are all important parts of building guan xi or personal relationships. Dress is usually conservative, topics like politics and religion are avoided, and banquets involve following customs like using chopsticks and not leaving gifts wrapped in blue. Overall, understanding Chinese business culture, building strong relationships over time, and communicating needs are keys to success, while impatience can lead businesses to fail in Hong Kong's growing market.
This document summarizes the book "The Wal-Mart Way" and discusses key aspects of Walmart's success including Sam Walton's visionary leadership, company culture emphasizing a "can-do" attitude, prioritizing customer service, a passion for excellence through constant improvement, leveraging technology, efficient supply chain management, growth while maintaining organizational health, and focus on corporate social responsibility. The summary highlights how Walton's leadership and establishment of core values helped grow Walmart from its beginnings into an international retail giant.
This document summarizes an LG Electronics India Ltd customer relationship management presentation. It discusses LG's service centers across Delhi, how customers can register complaints and check warranty terms. It also outlines LG's annual maintenance contracts, extended warranty programs, and loyalty programs that provide membership rewards and partner benefits. The presentation evaluates LG's customer service and identifies high repair costs as an area for improvement. It recommends solutions like optimizing price, logistics, customer service, inventory management and other areas to improve customer loyalty.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
5 Tips for Creating Standard Financial ReportsEasyReports
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...
Ratios Analysis
1. RATIOS<br />2628900316230Liquidity ratios<br />a) Current ratio = Current assets<br /> Current liabilities <br />For 2005 <br />Current ratio = 14040781 <br /> 8238179<br /> <br /> =1.7 <br />For 2006 <br />Current ratio = 15764057<br /> 10371383<br /> = 1.5<br />For 2007<br />Current ratio = 17719703<br /> 11516361<br /> = 1.5<br />NOTE: Current ratio is depends on debtors pay back period and creditors pay back period and in the above figure the current ratio fluctuate between 1.7 to 1.5 it shows that firm is becoming insufficiently liquid every year which is not good.<br />b) Quick ratio = Current Assets-Inventory-Prepaid Expenses<br /> Current Liabilities<br /> Quick Assets = Current assets-stock-prepaid expenses<br />For 2005<br /> <br />Quick Ratio = Quick Assets<br /> Current Liabilities<br /> <br /> = 9090199<br /> 8238179 <br /> =1.1<br />2438400-38100For 2006<br /> <br /> Quick ratio = 9772894<br /> 10371383<br /> =.94<br />For 2007<br /> <br />Quick Ratio = 11094587<br /> 11516361<br /> = .96<br />NOTE: In the above figure quick ratio is decreasing from 1.1 to .96 it shows the ability of the firm to repay its short term obligation is not perfect. <br />B) Solvency Ratios<br /> <br />a)Debt Equity Ratio= Long term debts <br /> Shareholder’s Fund <br />For 2005<br /> <br />2952750109855Debt Equity Ratio = Debt<br /> Equity<br /> = 2504328<br /> 39147690<br /> = 0.06<br /> <br />For 2006<br />Debt Equity Ratio = 3136185<br /> 48719696<br /> = 0.06<br /> <br />For 2007<br />Debt Equity Ratio = 3051473 <br /> 54968682<br /> = 0.05<br /> <br />NOTE: In the figure for the first two years debt equity ratio is constant but in the third year it decrease it shows Equity is increasing but LTD is decreasing so it is good for the firm because companies liabilities is decreasing so company paid less interest on their LTD. <br />b) Debt to Total Funds Employed<br />Debt to total funds Employed= Long term Debts<br /> Total Funds Employed<br />3429000-3175<br />For 2005<br />Debt to total funds Employed= 2504328 <br /> 41652018<br /> = 0.06<br />For 2006<br />Debt to total funds Employed = 3136185 <br /> 51855821<br /> = 0.06<br /> For 2006<br />Debt to total funds Employed = 3051473 <br /> 58020155<br /> = 0.05<br />NOTE: In the figure for the first two years debt equity ratio is constant but in the third year it decrease it shows Capital employed is increasing but LTD is decreasing so it is good for the firm because companies liabilities is decreasing so company paid less interest on their LTD. <br />C) Interest Coverage Ratio = NPBTAI<br /> Interest on LTD<br />309562568580<br />For 2005<br /> ICR = 8756636 . 41672 <br /> = 210.13<br />For 2006<br />ICR = 9920557<br /> 52612 <br /> = 188-56<br />For 2007<br />ICR =9200431 <br /> 50990<br /> = 180.43<br />NOTE: Interest coverage ratio in the above figure is decreasing it is good for the firm because companies interest is decreasing it mean their margin of profit is increasing. <br />C) Activity Ratio<br />a) Capital Turnover Ratio <br />Capital Turnover Ratio= Net Sales<br />286702592075 Capital Employed<br />For 2005<br />Capital Turnover Ratio= 56720306 <br /> 41652018<br /> = 1.36 times<br />For 2006<br />Capital Turnover Ratio= 63479833 <br /> 51855821<br /> = 1.2 times<br />For 2007<br />Capital Turnover Ratio= 67351778 <br /> 58020155<br /> = 1.16 times<br />NOTE: Capital Turnover Ratio in the figure is decreasing it shows company is not efficient with which the capital employed is utilized. <br />b) Fixed Asset Turnover Ratio<br />286702588265<br />Fixed Asset Turnover Ratio = Net Sales<br /> Net Fixed Asset<br />For 2005<br />Fixed Asset Turnover Ratio = 56720306 <br /> 24333854 <br /> = 2.33 times<br />For 2006<br />Fixed Asset Turnover Ratio = 63479833 <br /> 31023081 <br /> = 2.04times<br />For 2007<br />Fixed Asset Turnover Ratio = 67351778 <br /> 31745610<br /> = 2.12 times<br />NOTE: In the above figure it shows initially company is not utilizing their fixed asset but in 2007 the ratio is increased it shows company I using their fixed asset efficiently. <br />c) Working Capital Turnover Ratio<br />Working Capital Turnover Ratio = Net Sales<br />320040014605 Working Capital<br />For 2005<br />Working Capital Turnover Ratio = 56720360 <br /> 5802602 <br /> = 9.77 <br />For 2006<br />Working Capital Turnover Ratio = 63479833 <br /> 5392674 <br /> = 11.77<br />For 2007<br />Working Capital Turnover Ratio = 67351778 <br /> 6203342 <br /> = 10.85<br />NOTE: in the above figure WCTR firstly increasing and decreased in 2007 which is not good from the companies point of view <br />d) Stock Turnover Ratio<br />293370063500<br />Stock Turnover Ratio = Cost of Goods Sold<br /> Average Stock<br />For 2005<br />Stock Turnover Ratio = 39642794 <br /> 2992974 <br /> = 13.24 times <br />For 2006<br />Stock Turnover Ratio = 45597151 <br /> 1889353 <br /> = 24.13 times <br />For 2007<br />Stock Turnover Ratio = 49943013 <br /> 3495387 <br /> = 14.28 times <br />NOTE: firstly STR is increasing which is not suitable for the company because their COGS are more but when STR is declining it is good for the company because their expense are declining.<br />e) Debtors Turnover Ratio<br />309562580010Debtors Turnover Ratio = Net Credit Sales<br /> Average Debtors<br />For 2005<br />Debtors Turnover Ratio = 56720360 <br /> 2274932 <br /> = 24.93 times <br />For 2006<br />Debtors Turnover Ratio = 63479833 <br /> 1582930 <br /> = 40.10 times <br />For 2007<br />Debtors Turnover Ratio = 67351778 <br /> 2825873.5 <br /> = 23.83 times <br />NOTE: in the above figure firstly DTR is increased to much and it go up to 40.10 which is good for the company because the risk is less but when it declining in 2007 it shows the companies debtors are increasing which mean their risk is also increased. <br />318135048260f). Creditors Turnover Ratio<br />Creditors Turnover Ratio = Net Credit Purchases<br /> Average Creditors<br /> <br />For 2005<br />Creditors Turnover Ratio = 39642794 <br /> 2542802 <br /> = 15.59 times <br />For 2006<br />Creditors Turnover Ratio = 45597157 <br /> 5352929<br /> = 8.51 times<br />For 2007<br />Creditors Turnover Ratio = 49943013 <br /> 5359852 <br /> = 9.31 times <br />NOTE: Above figure shows when CTR is increased in 2006 it shows company is having less creditor but when it is increased in 2007 it is not good for the company because company is more liable to pay to their creditors.<br />D) Profitability Ratios<br />309562534925a) Gross Profit Ratio = Gross Profit × 100<br /> Net Sales<br />For 2005<br />Gross Profit Ratio = 17077512 × 100<br /> 56720306<br /> = 30.10 %<br />For 2006<br />Gross Profit Ratio = 17882682 × 100<br /> 63479833<br /> = 28.17 %<br />For 2007<br />Gross Profit Ratio = 17408765 × 100<br /> 67351778<br /> = 25.84%<br />NOTE: in the above figure it shows the GP is declining which is not good for the company because their margin of profit is decreasing.<br />f) Net Profit Ratio <br /> Net Profit Ratio = Net Profit × 100<br /> Net Sales<br />2743200111125For 2005<br />Net Profit Ratio = 7542165 × 100<br /> 56720306<br /> = 13.29 %<br />For 2006<br />Net Profit Ratio = 8531848 × 100<br /> 63479833<br /> = 13.44 %<br />For 2007<br />Net Profit Ratio = 7915795 × 100<br /> 67351778<br /> = 11.75 %<br />NOTE : Above figure shows NPR is firstly increase which is good but in the year 2007 it is decreased it mean companies margin of profit is decreasing. <br />a) Operating Profit Ratio = Operating Profit × 100<br /> Net Sales<br />298132567945<br />For 2005<br />Operating Profit Ratio = 7956343 × 100<br /> 56720306<br /> = 14.02 %<br />For 2006<br />Operating Profit Ratio = 7463868 × 100<br /> 63479833<br /> = 11.75%<br />For 2007<br />Operating Profit Ratio = 6335666 × 100<br /> 67351778<br /> = 9.41 %<br />NOTE : above figure also shows that companies margin of profit is decreasing. <br />3162300147320<br />e) Return on Total Assets = NPBIT × 100<br /> Total Assets<br />For 2005<br />Return on Total Assets = 8756636 × 100<br /> 49090197<br /> = 17.84%<br />For 2006<br />Return on Total Assets = 9920557 × 100<br /> 62227264<br /> = 15.94 %<br />For 2007<br />Return on Total Assets = 9200431 × 100<br /> 69536516<br /> = 13.23 %<br />NOTE : Above figure shows company is not utilizing their asset efficiently. <br />f) Return on Capital Employed = NPBIT × 100<br /> Capital Employed<br />325755088265For 2005<br />Return on Capital Employed = 8756636 × 100<br /> 41652018<br /> = 21.02%<br />For 2006<br />Return on Capital Employed = 9920557 × 100<br /> 51855821<br /> = 19.13 %<br />For 2007<br />Return on Capital Employed = 9200431 × 100<br /> 58020155<br /> = 15.85 %<br />NOTE: Above figure graph is declining it shows that company return on total capital employed are not in a good position. <br />g) Return on Shareholder’s Capital = NPAIT × 100<br /> Shareholder’s fund<br />For 2005<br />3295650635<br />Return on Shareholder’s Capital = 7542165 × 100<br /> 39147690<br /> = 19.26 %<br />For 2006<br />Return on Capital Employed = 8531848 × 100<br /> 48719696<br /> = 17.51%<br />For 2007<br />Return on Capital Employed = 7915795 × 100<br /> 45968682<br /> = 17.21 %<br />NOTE: Above figure graph is declining it shows that company return on share capital are not in a good position. <br />g) Return on Equity = NPAIT × 100<br /> Equity Shareholder’s fund<br />300037583185<br />For 2005<br />Return on Equity = 7542165 × 100<br /> 39147690<br /> = 19.26%<br />For 2006<br />Return on Equity = 8531848 × 100<br /> 48719696<br /> = 17.51%<br />For 2007<br />Return on Equity = 7915795 × 100<br /> 45968682<br /> = 17.22%<br />NOTE : Above figure graph is declining which mean that returns on equity shareholder fund are nor perfect. <br />280987574930<br />h) Earning per share=NPAIT <br /> No. of shares<br /> <br /> EPS = 49<br />For 2006<br /> EPS = 56921<br />For 2007<br /> EPS = 53<br />i) Dividend per share = Dividend declared<br /> No. of shares<br />274320010160For 2005<br /> DPS = 48<br /> <br /> <br /> For 2006<br />DPS = 56103<br /> <br /> <br />For 2007<br />DPS = 52 <br /> Samsung Electronics Co., Ltd.<br />Non-Consolidated Statements of Income<br />For the years ended December 31, 2005 and 2004<br />(In millions of Korean won, in2005200420052004thousands of U.S. dollars (Note 3))Sales (Note 26)₩57,457,670₩57,632,359$56,720,306$56,892,753Cost of sales40,158,15037,279,68639,642,79436,801,269Gross profit17,299,52020,352,67317,077,51220,091,484Selling, general and administrativeexpenses9,239,7458,335,7969,121,1698,228,822Operating profit8,059,77512,016,8777,956,34311,862,662Non-operating incomeInterest and dividend income229,654295,428226,707291,637Commission income366,519205,287361,815202,653Foreign exchange gains399,624402,774394,496397,605Gain on foreign currency translation(Note 28)90,187138,52889,030136,750Gain on valuation of investmentsusing the equity methodof accounting (Note 10)1,131,014576,9231,116,500569,519Others454,361517,801448,529511,1562,671,3592,136,7412,637,0772,109,320Non-operating expensesInterest expense42,21465,97041,67265,123Foreign exchange losses348,804364,867344,328360,185Loss on foreign currency translation(Note 28)31,24441,90330,84341,365Loss on valuation of investmentsusing the equity methodof accounting (Note 10)972,173-959,697-Others466,227556,352460,244549,2121,860,6621,029,0921,836,7841,015,885Ordinary profit8,870,47213,124,5268,756,63612,956,097<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Statements of Income<br />For the years ended December 31, 2005 and 2004<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2005200420052004Extraordinary income₩-₩-$-$-Extraordinary loss----Net income before income taxes8,870,47213,124,5268,756,63612,956,097Income tax expense (Note 24)1,230,2592,337,7841,214,4712,307,783Net income₩ 7,640,213₩10,786,742$7,542,165$ 10,648,314Basic earnings per share (Note 25)(in Korean won and U.S. dollars)₩49,970₩67,899$49$67Diluted earnings per share (Note 25)(in Korean won and U.S. dollars)₩49,128₩66,864$48$66<br />The accompanying notes are an integral part of these non-consolidated financial statements.<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Balance Sheets December 31, 2005 and 2004<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2005200420052004AssetsCurrent assetsCash and cash equivalents₩ 1,053,552₩ 957,819$1,040,032$945,527Short-term financial instruments(Note 4)3,897,9314,186,7063,847,9084,132,977Short-term available-for-salesecurities (Note 5)1,917,1222,289,3651,892,5192,259,985Trade accounts and notesreceivable, net of allowance fordoubtful accounts (Note 6)1,496,9391,331,5871,477,7291,314,499Other accounts and notes receivable,net of allowance for doubtfulaccounts (Note 6)842,828937,658832,011925,625Inventories, net of valuation losses(Note 7)2,909,4473,154,3182,872,1103,113,838Short-term deferred incometax assets (Note 24)907,680-896,032-Prepaid expenses and other currentassets1,197,8121,101,0381,182,4401,086,908Total current assets14,223,31113,958,49114,040,78113,779,359Lease receivables under capitallease (Note 8)269,179312,034265,725308,030Property, plant and equipment,including revalued portion,net of accumulated depreciation(Note 11)24,650,19419,727,80724,333,85419,474,637Long-term available-for-salesecurities (Note 9)977,409463,197964,866457,253Equity-method investments (Note 10)8,891,8808,353,2118,777,7698,246,013Intangible assets, net of accumulatedamortization (Note 12)465,801399,376459,823394,251Long-term deposits and other assets(Note 13)1,060,996602,4271,047,379594,695Total assets₩50,538,770₩43,816,543$49,890,197$43,254,238<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Balance Sheets December 31, 2005 and 2004<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2005200420052004Liabilities andShareholders' EquityCurrent liabilitiesTrade accounts and notes payable₩ 1,867,185₩ 1,823,316$1,843,223$1,799,917Other accounts and notes payable2,917,6592,595,5572,880,2162,562,248Accrued expenses (Note 16)2,506,5012,359,7512,474,3352,329,468Income taxes payable789,9251,378,429779,7881,360,739Other current liabilities264,005563,850260,617556,614Total current liabilities8,345,2758,720,9038,238,1798,608,986Foreign currency notes andbonds (Note 14)95,55798,54594,33197,280Long-term advances received505,950-499,457-Long-term accrued expenses(Note 16)133,748-132,031-Deferred income tax liabilities(Note 24)865,76119,983854,65019,727Accrued severance benefits (Note 15)498,488397,084492,091391,988Other long-term liabilities437,381139,619431,768137,828Total liabilities₩10,882,160₩ 9,376,134$10,742,507$9,255,809<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Balance Sheets December 31, 2005 and 2004<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2005200420052004Commitments and contingencies(Note 17)Shareholders' equityCapital stock (Note 18)Common stock₩ 778,047₩ 778,047$768,062$768,062Preferred stock119,467119,467117,934117,934Capital surplusPaid-in capital in excess ofpar value4,403,8934,403,8934,347,3774,347,377Other capital surplus1,961,4221,927,7731,936,2511,903,034Retained earnings (Note 19)37,365,89230,575,04136,886,36930,182,666(Net income of ₩7,640,213 millionin 2005 and₩10,786,742 millionin 2004)Capital adjustmentsTreasury stock (Note 21)(5,970,778)(4,159,639)(5,894,154)(4,106,258)Others (Note 22)998,667795,827985,851785,614Total shareholders' equity39,656,61034,440,40939,147,69033,998,429Total liabilities &shareholder's equity₩50,538,770₩43,816,543$49,890,197$43,254,238<br />The accompanying notes are an integral part of these non-consolidated financial statements.<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Balance Sheets December 31, 2006 and 2005<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2006200520062005AssetsCurrent assetsCash and cash equivalents₩ 977,989₩ 1,053,552$1,052,733$1,134,07Short-term financial instruments3,335,1413,897,9313,590,0334,195,83(Note 4)Short-term available-for-sale2,058,7811,917,1222,216,1262,063,64securities (Note 5)Trade accounts and notes receivable,net of allowance for doubtful1,842,4391,496,9391,983,2501,611,34accounts (Note 6)Other accounts and notes receivable,net of allowance for doubtful864,669842,828930,752907,24accounts (Note 6)Inventories, net of valuation losses3,219,4742,909,4473,465,5263,131,80(Note 7)Short-term deferred income tax1,155,410907,6801,243,714977,05assets (Note 24)Prepaid expenses and other current1,190,9061,197,8121,281,9231,289,35assetsTotal current assets14,644,80914,223,31115,764,05715,310,34Lease receivables under finance lease223,488269,179240,569289,75(Note 8)Property, plant and equipment,including revaluations, net of28,820,44224,650,19431,023,08126,534,11accumulated depreciation (Note 11)Long-term available-for-sale securities1,148,944977,4091,236,7531,052,10(Note 9)Equity-method investments (Note 10)11,265,0838,891,88012,126,0319,571,45Intangible assets, net of accumulated522,378465,801562,301501,40amortization (Note 12)Long-term deposits and other assets,1,183,9841,060,9961,274,4721,142,08net (Note 13)Total assets₩57,809,128₩50,538,770$62,227,264$ 54,401,25<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Balance Sheets December 31, 2006 and 2005<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2006200520062005Liabilities and Shareholders' EquityCurrent liabilitiesTrade accounts and notes payable₩ 1,869,101₩ 1,867,185$2,011,949$2,009,887Other accounts and notes payable3,291,7972,917,6593,543,3773,140,645Accrued expenses (Note 16)2,873,1482,506,5013,092,7322,698,064Income taxes payable1,111,233789,9251,196,160850,296Other current liabilities489,736264,005527,165284,181Total current liabilities9,635,0158,345,27510,371,3838,983,073Foreign currency notes and bonds87,31795,55793,990102,860(Note 14)Long-term advances received340,033505,950366,020544,618Long-term accrued expenses (Note 16)274,527133,748295,508143,970Deferred income tax liabilities1,158,802865,7611,247,365931,928(Note 24)Accrued severance benefits,net620,469498,488667,889536,586(Note 15)Other long-term liabilities432,368437,381465,413470,808Total liabilities12,548,53110,882,16013,507,56811,713,843Commitments and contingencies(Note 17)Shareholders' equityCapital stock (Note 18)Common stock778,047778,047837,510837,510Preferred stock119,467119,467128,597128,597Capital surplusPaid-in capital in excess of par4,403,8934,403,8934,740,4664,740,466valueOther capital surplus1,963,3511,961,4222,113,4042,111,326Retained earnings (Note 19)(Net income of ₩7,926,087 millionin 2006 and ₩7,640,213 million in44,460,18937,365,89247,858,11540,221,6282005)Capital adjustmentsTreasury stock (Note 21)(7,520,023)(5,970,778)(8,094,750)(6,427,102)Others (Note 22)1,055,673998,6671,136,3541,074,991Total shareholders' equity45,260,59739,656,61048,719,69642,687,416Total liabilities & shareholders'₩ 57,809,128₩50,538,770$62,227,264$54,401,259equity<br />The accompanying notes are an integral part of these non-consolidated financial statements.<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Statements of Income<br />For the years ended December 31, 2006 and 2005<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2006200520062005Sales (Note 26)₩58,972,765₩57,457,670$ 63,479,833$ 61,848,945Cost of sales42,359,75340,158,15045,597,15143,227,287Gross profit16,613,01217,299,52017,882,68218,621,658Selling, general and administrativeexpenses9,679,0799,239,74510,418,8149,945,905Operating profit6,933,9338,059,7757,463,8688,675,753Non-operating incomeInterest and dividend income257,417229,654277,090247,206Commission income315,172366,519339,259394,531Gain on disposal of available-for-salesecurities58,98033,27163,48835,814Gain on disposal of property, plantand equipment78,63641,29184,64644,447Foreign exchange gains403,701399,624434,554430,166Gain on foreign currency translation(Note 28)124,99890,187134,55197,080Gain on valuation of equity-methodinvestments (Note 10)1,798,5051,131,0141,935,9581,217,453Others372,013379,799400,445408,8243,409,4222,671,3593,669,9912,875,521Non-operating expensesInterest expenses48,87742,21452,61245,440Loss on disposal of trade accountsand notes receivable253,740185,536273,132199,716Donations175,249173,563188,643186,828Loss on disposal of available-for-salesecurities3,69121,5333,97323,179Loss on disposal of property, plantand equipment37,87613,51740,77114,550Foreign exchange losses391,831348,804421,777375,462Loss on foreign currency translation(Note 28)28,98831,24431,20333,632Loss on valuation of equity-methodinvestments (Note 10)92,553972,17399,6261,046,473Others94,35372,078101,56577,5851,127,1581,860,6621,213,3022,002,865Ordinary profit9,216,1978,870,4729,920,5579,548,409<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Statements of Income<br />For the years ended December 31, 2006 and 2005<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2006200520062005Extraordinary income₩-₩-$-$-Extraordinary loss----Net income before income tax9,216,1978,870,4729,920,5579,548,409Income tax expense (Note 24)1,290,1101,230,2591,388,7091,324,283Net income₩ 7,926,087₩ 7,640,213$8,531,848$8,224,126Basic earnings per share (Note 25)(in Korean won and U.S. dollars)₩52,880₩49,970$56,921$53,789Diluted earnings per share(Note 25) (in Korean won and U.S.dollars)₩52,120₩49,128$56,103$52,883<br />The accompanying notes are an integral part of these non-consolidated financial statements.<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Balance Sheets December 31, 2007 and 2006<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2007200620072006AssetsCurrent assetsCash and cash equivalents₩ 2,026,791₩ 977,989$2,160,758$1,042,632Short-term financial instruments(Note 4)4,862,8693,335,1415,184,2953,555,587Short-term available-for-salesecurities (Note 5)922,8332,058,781983,8302,194,862Trade accounts and notesreceivable, net of allowance for1,780,5071,842,4391,898,1951,964,221doubtful accounts (Note 6)Other accounts and notes receivable,net of allowance for doubtful813,723864,669867,509921,822accounts (Note 6)Inventories, net of valuation losses3,337,8723,219,4743,558,4993,432,275(Note 7)Short-term deferred income taxassets (Note 24)1,241,6361,155,4101,323,7061,231,780Short-term lease receivables underfinance lease112,29569,348119,71773,932Advanced payments859,713551,479916,538587,931Prepaid expenses407,082400,824433,989427,318Other current assets255,760238,603272,667254,375Total current assets16,621,08114,714,15717,719,70315,686,735Property, plant and equipment,including revaluations, net of29,777,38228,820,44231,745,61030,725,418accumulated depreciation (Note 11)Long-term available-for-sale securities1,936,1761,148,9442,064,1541,224,887(Note 9)Equity-method investments (Note 10)15,008,46211,265,08316,000,49312,009,683Intangible assets, net of accumulated568,316522,378605,881556,906amortization (Note 12)Long-term lease receivables under245,410154,140261,631164,328finance leaseLong-term deposits and other assets,net (Note 13)1,068,4251,183,9841,139,0441,262,244Total assets₩65,225,252₩57,809,128$69,536,516$ 61,630,201<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Balance Sheets December 31, 2007 and 2006<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2007200620072006Liabilities and Shareholders' EquityCurrent liabilitiesTrade accounts and notes payable₩ 1,935,663₩ 1,869,101$2,063,607$1,992,645Other accounts and notes payable2,958,5213,291,7973,154,0743,509,378Accrued expenses (Note 16)4,071,1442,873,1484,340,2393,063,058Income taxes payable1,114,0481,111,2331,187,6841,184,683Other current liabilities722,970489,736770,757522,107Total current liabilities10,802,3469,635,01511,516,36110,271,871Foreign currency notes and bonds,net of current portion (Note 14)83,81587,31789,35593,088Long-term advances received168,650340,033179,797362,509Long-term accrued expenses (Note 16)39,174274,52741,763292,673Deferred income tax liabilities(Note 24)1,508,4491,221,8151,608,1551,302,575Accrued severance benefits, net(Note 15)623,147620,469664,336661,481Other long-term liabilities439,047432,368468,067460,946Total liabilities13,664,62812,611,54414,567,83413,445,143<br />Commitments and contingencies (Note 17)<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Balance Sheets December 31, 2007 and 2006<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2007200620072006Shareholders' equityCapital stock (Note 18)Common stock₩778,047₩778,047$829,474$829,474Preferred stock119,467119,467127,364127,364Capital surplusPaid-in capital in excess of parvalue4,403,8934,403,8934,694,9824,694,982Other capital surplus1,959,6401,963,3512,089,1682,093,125Capital adjustmentsTreasury stock (Note 21)(9,157,492)(7,520,023)(9,762,785)(8,017,082)Stock options475,197539,153506,607574,790Accumulated other comprehensiveincome (Note 23)2,019,195556,9242,152,660593,735Retained earnings (Note 19)50,962,67744,356,77254,331,21247,288,670Total shareholders' equity51,560,62445,197,58454,968,68248,185,058Total liabilities & shareholders'equity₩65,225,252₩ 57,809,128$ 69,536,516$61,630,201<br />The accompanying notes are an integral part of these non-consolidated financial statements.<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Statements of Income<br />For the years ended December 31, 2007 and 2006<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2007200620072006Sales (Note 27)₩63,175,968₩58,972,765$ 67,351,778$ 62,870,752Cost of sales46,846,54642,359,75349,943,01345,159,652Gross profit16,329,42216,613,01217,408,76517,711,100Selling, general and administrativeexpenses10,386,5679,679,07911,073,09910,318,847Operating profit5,942,8556,933,9336,335,6667,392,253Non-operating incomeInterest and dividend income292,983257,417312,349274,432Commission income339,496315,172361,936336,004Gain on disposal of available-for-salesecurities38,51158,98041,05762,878Gain on disposal of property, plantand equipment101,60578,636108,32183,834Foreign exchange gains347,061403,701370,001430,385Gain on foreign currency translation(Note 29)48,573124,99851,784133,260Gain on valuation of equity-methodinvestments (Note 10)2,627,1651,798,5052,800,8161,917,383Others366,690372,013390,926396,6024,162,0843,409,4224,437,1903,634,778Non-operating expensesInterest expenses47,82948,87750,99052,108Loss on disposal of trade accountsand notes receivable284,204253,740302,989270,512Donations182,565175,249194,632186,833Loss on disposal of available-for-salesecurities1,7543,6911,8703,935Loss on disposal of equity methodinvestments26,653-28,415-Loss on disposal of property, plantand equipment55,68537,87659,36640,380Foreign exchange losses457,020391,831487,228417,730Loss on foreign currency translation(Note 29)46,04828,98849,09230,904Loss on valuation of equity-methodinvestments (Note 10)262,28492,553279,62098,671Others110,89394,353118,223100,5881,474,9351,127,1581,572,4251,201,661<br />Samsung Electronics Co., Ltd.<br />Non-Consolidated Statements of Income<br />For the years ended December 31, 2007 and 2006<br />(In millions of Korean won, in thousands of U.S. dollars (Note 3))2007200620072006Net income before income tax₩ 8,630,004₩ 9,216,197$9,200,431$9,825,370Income tax expense (Note 24)1,204,9881,299,7061,284,6361,385,614Net income₩ 7,425,016₩ 7,916,491$7,915,795$8,439,756Basic earnings per share (Note 25)(in Korean won and U.S. dollars)₩49,532₩52,816$53$56Diluted earnings per share(Note 25) (in Korean won and U.S.dollars)₩48,954₩52,057$52$55<br />The accompanying notes are an integral part of these non-consolidated financial statements.<br /> RATIO ANALYSIS PROJECT <br /> ON SAMSUNG<br /> <br /> (FOR THE YEAR 2005/2006/2007)<br /> <br /> <br /> SUBMITTED BY:-<br /> DEEPAK KHANDODIYA<br /> MOHIT ARYA<br /> PRANJAL AERON<br /> PRASOON VARSHNEY<br /> TASAVUR<br /> VARUN VARSHNEY<br /> <br /> <br />