Friday, November 11, 2011

Re: [ vuZs.net ] FIN 630 & CS507

is main net income / profit aur vaerage outstanding share  kaisey maloom kia hai 

On Fri, Nov 11, 2011 at 9:11 PM, mc090404633 Muhammad Asif Rasool <mc090404633@vu.edu.pk> wrote:
Marina khan ap ki quic ratio or net profit margin galat ha file attach kar raha hon chek karo



On Sun, Nov 6, 2011 at 12:01 AM, Marina Khan <damsel.khan@googlemail.com> wrote:
(fin630) Oh God very easy Assignment you got......let me solve 

Question #01. You are required to calculate the following:

 

Quick Ratio = Current assets - inventories / current liabilities

= 937 - 212 / 409

=1.77 times     

 

Net profit Margin = Profit after Tax / Net Sales x 100

= 50,150 / 105,000*100

= 47.7 = 48 %

 

Times Interest Earned (Interest Coverage Ratio) = BIT / Interest Expense

= 50,150 / 2,550

= 19.6 times


Ratios

 

Industry average

 

Company's ratio

Ranking

(poor/good or

low/high)

Quick

1.75 Times

1.77 times

good

Net Profit Margin

35%

48%

good

Interest coverage

16 Times

19 times

good

Earning per share

Rs. 1.35

 ?


because 

1. benchmark of Quick ratio is 1:1 n above then this consider as good 

2.Interest coverage : Increasing Ratio is favorable because it may attract the investors.

3. Net profit margin if increase good for the comapny n decrease not favorable 




Only 1 ratio left .......dont worry i'll solve it tomorrow.....if u find any mistake let me inform =)




--


Marina Khan 

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