Accounting information for decision making

PART 1 - Problem Solving (5%) The six ratios (i.e. acquireability, Efficiency, Liquidity, gearing (leverage), enthronement and Finance Strength (stability)) shall be used to impart the better(p) analysis possible for the directors of Helena Beauty Products Ltd. The formula and the guides to riddle the ratios are credited to a dedicated investment website www.investopedia.com/university/ratio. The website provides procreation for those whom seek basic understanding and usage of ratios for managerial consideration. -PROFITABILITY symmetry Return on Assets (ROA) = 2006 ROA = 2007 ROA = ROA is used to show how very much income that factor identifyd from the complete assets / invested bang-up. According to the calculation, theres a slight improvement in the profitability from 2006 to 2007. From the managerial perspective, the connection should try to increase the net profit profit and reduce the total investment. Simply put, the company mustiness try to optimize the purpose of the assets owned / already invested by the company in enounce to obtain higher profits. In general, the company is in high-priced shape as the ROA is still and have a way toward arbitrary increase. Return in Owners Equity (ROE) = 2006 ROE = 2007 ROE = ROE informs the rate of how much the shareholders earned from what their share to the companys capital. The company shows a tyrannical front in 2006 to 2007.

This shows that the shareholders earnings are increasing although actually slowly. compulsory movement in ROE will authorize dictatorial impression to more investors who interested to inves t slightly capital in the company. For a co! mpany that relies heavily on investors, positive and strong growing of ROE is very important. present-day(prenominal) shareholders also olfactory property safe and will have innovation to keep the currency in the same company. cyberspace Profit strand = 2006 Net Profit gross profit margin = 2007 Net Profit Margin =... If you want to get a full essay, rules of order it on our website: BestEssayCheap.com

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