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Yes depending on the level of profitability
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∙ 12y ago
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TYPES OF financial statement analysis?
There are numerous financial ratios use to analyse different aspects of a company's financial performance Profitability ratios * Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate of return. * Gross margin, Gross profit margin or Gross Profit Rate * Operating margin, Operating Income Margin, Operating profit margin or Return on sales (ROS) * Profit margin, net margin or net profit margin * Return on equity (ROE) * Return on investment (ROI ratio or Du Pont ratio) * Return on assets (ROA) * Efficiency ratio * Net gearing Liquidity ratios Liquidity ratios measure the availability of cash to pay debt. * Current ratio * Acid-test ratio (Quick ratio) * Operation cash flow ratio Activity ratiosActivity ratios measure the effectiveness of the firms use of resources. * Average collection period * DSO Ratio * Average payment period * Asset turnover * Inventory turnover ratio * Receivables Turnover Ratio * Inventory conversion ratio * Inventory conversion period * Receivables conversion period * Payables conversion period Debt ratios (leveraging ratios) Debt ratios measure the firm's ability to repay long-term debt. Debt ratios measure financial leverage. * Debt ratio * Debt to equity ratio * Long-term Debt to equity (LT Debt to Equity) * Times interest-earned ratio * Debt service coverage ratio Market ratios Market ratios measure investor response to owning a company's stock and also the cost of issuing stock. * Earnings per share (EPS) * Payout ratio * Dividend cover (the inverse of Payout Ratio) * P/E ratio * Dividend yield * Cash flow ratio or Price/cash flow ratio * Price to book value ratio (P/B or PBV) * Price/sales ratio * PEG ratio
Are mutual insurance companies inherently stronger than stock or public insurance companies and why?
The mutual business model in no way implies that it will be a stronger company. The only difference between mutual and stock companies is who the profits are paid to. If a company can not produce underwriting profits, it doesn't matter if a stockholder or a policyholder owns the company it will not last. Underwriter profits are fundimental to the overall operation ratio of a company and the operating ratio determines how well the company is doing. Chad Joiner http://insurance-racsun.blogspot.com
What is EPS and why is important in analysing share investments?
In its simplest form EPS (Earnings Per Share) gives an indication of how much of a company's profit is earned for each issued share. The ratio is calculated by dividing the Net Profit by the number of issued shares. The higher the ratio, the better is the investment. The EPS ratio is used to quickly differentiate between companies for investment purposes - as mentioned above the higher the ratio, the better the investment. Of course, this is only one measure of the the value of an investment. There are many other factors to be considered when making investment decisions, and such decisions should not be made on the basis of one ratio.
Is a rate always a ratio?
yes because a ratio is a rate so a rate would have to be a ratio
Current ratio and liquidity ratio are same?
no they are not the same. the current ratio is current assets/current liabilities. but liquidity ratio or acid test ratio is current assets - stock/current liabilities. liquidity ratio shows you how able a business is to pay off its debt when stock is taken out of the equation.
Do most companies set a target dividend payout ratio?
Yes, many modern companies set a target dividend payout ratio. A target dividend payout ratio is used to determine what ratio of profits is paid out to the shareholders.
What factors taken into consideration while determining payout ratio?
Payout ratios vary widely when consideration of the company is taken into. Some companies reinvest their payouts to better the company, while others determine payout ratio to their investors.
In what situation the company follow low medium or high medium payout ratio?
in what situation the company follow low medium or high medium payout ratio
A company with a higher dividend payout ratio will have what kind of debt to assets ratio?
high
What is devident payout ratio?
Dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends. The portion of the earnings not paid to investors is allocated towards investment to provide for future earnings growth. Investors seeking high current income and limited capital growth prefer companies with a high dividend payout ratio. However investors seeking capital growth may prefer lower payout ratio because capital gains are taxed at a lower rate.Payout Ratio a.k.a Dividend Payout Ratio is the ratio that tell us the amount of dividend paid by the company to its common stock holders in comparison to its total income for the same time period. This percentage tells us how much dividend is paid by a company in comparison to its total revenues.Formula:DPR = Dividends Paid / Net Income for the same time periodA Good DPR is always a sign of a well performing company. If two stocks from the same industry are picked for comparison, the one with the higher DPR always scores more than the one that has little or no DPR.
What is the primary determinants of a firm's value?
- shareholder's wealth - growth - dividend-payout ratio - leverage -
What is Target Corp's inventory turnover ratio?
Forbes.com has an up-to-date (Last 12 months) list of ratios for companies. In the last 12 months (From 11/15/11), Target as an inventory turnover of 6.0.
Would you expect a company in a rapidly growing technological industry to have a high or low dividend payout ratio?
In rapidly growing industries companies tries to pay no or low dividend becasue they want to retain the profit for investment in future profitable opportunities.
How do you figure out dividend payout ratio?
Payout Ratio a.k.a Dividend Payout Ratio is the ratio that tell us the amount of dividend paid by the company to its common stock holders in comparison to its total income for the same time period. This percentage tells us how much dividend is paid by a company in comparison to its total revenues.Formula:DPR = Dividends Paid / Net Income for the same time periodA Good DPR is always a sign of a well performing company. If two stocks from the same industry are picked for comparison, the one with the higher DPR always scores more than the one that has little or no DPR.
What is A firm's dividend payout ratio is?
Payout Ratio a.k.a Dividend Payout Ratio is the ratio that tell us the amount of dividend paid by the company to its common stock holders in comparison to its total income for the same time period. This percentage tells us how much dividend is paid by a company in comparison to its total revenues.Formula:DPR = Dividends Paid / Net Income for the same time periodA Good DPR is always a sign of a well performing company. If two stocks from the same industry are picked for comparison, the one with the higher DPR always scores more than the one that has little or no DPR.
How do you calculate swap ratio?
Swap ratio is the ratio in which an acquiring company will offer its own shares in exchange for the target company's shares during a merger or acquisition. To calculate the swap ratio, companies analyze financial ratios such as book value, earnings per share, profits after tax and dividends paid, as well as other factors.
What is the parking ratio for a typical Target store?
The typical Target parking ratio is not that bad. There are always people moving in and out so you can find a parking in no time.
