What other deductions can you derive from the above statement? .
Irrespective of which of these factors played a role, the variance needs to be investigated, as it frequently reflects upon inventory that is stolen by customers and staff. .
This ratio also gives some idea of whether an investor is paying too much for what would be left if the company went bankrupt immediately.First, its an indicator of the companys efficiency in managing its important working capital assets; Second, it provides a clear view of a companys ability to pay off its current liabilities.Starbucks is the category killer with a wide competitive moat, underpinned by quality and innovation advantages over low-cost coffee and quick service restaurant ( nyse:QSR ) players, with convenience, technological, and cost advantages compared with higher-end, boutique coffee shops. However, we need to see this ratio in the context of the industry in which the company finds itself.The norm has been stated. .
A companys operating income figure is often the preferred metric (deemed to be more reliable) of investment analysts, versus its net income figure, for making inter-company comparisons and financial projections.
As such, there are dangers to ratio analysis if it is done mechanically.
However, it is not always easy to do this, as your suppliers might be very large and influential. . To compare its cash generating ability we use dividend yield, the other important tool when measuring a shares relative rating.How would this compare with the situation in the retail clothing industry where Edcon is a major player? The P/Es of both companies are similar; however Mutual and Federals share price is around R25 and Santams share price is around R102.Equally important is the need to measure what the different Key Performance Areas and Indicators are turning.The price-to-book ratio, or, p/B ratio, is a financial ratio used to compare a company's current market price to its book value.What does goodwill refer to?Variations: imvu chat room slot None Commentary: First, a few remarks about the mechanics of these ratios are in order. Goodwill is R40 million.Thus, one should also look at the general economy when analysing P/E ratios.