Accounting information for decision making

PART 1 - Problem Solving (5%) The six ratios (i.e. winningsability, Efficiency, Liquidity, gear wheel (leverage), enthronement and Finance Strength (stability)) shall be used to tender the better(p) analysis possible for the directors of Helena Beauty Products Ltd. The formula and the guides to ladder the ratios are credited to a dedicated investment website www.investopedia.com/university/ratio. The website provides rearing for those whom seek basic understanding and usage of ratios for managerial consideration. -PROFITABILITY dimension Return on Assets (ROA) = 2006 ROA = 2007 ROA = ROA is used to show how ofttimes income that ingredient identifyd from the complete assets / invested capital. 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 pull in profit and reduce the total investment. Simply put, the company moldiness 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 unchangeable 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 supreme rationalise in 2006 to 2007. This shows that the shareholders earnings are increasing although actually slowly. positivistic movement in ROE will authorize lordly impression to more investors who interested to invest slightly capital in the company. For a company that relies heavily on investors, positive and strong growing of ROE is very important. present-day(prenominal) shareholders also happen safe and will have innovation to keep the funds in the same company. earnings Profit strand = 2006 Net Profit gross profit margin = 2007 Net Profit Margin =... If you want to! get a full essay, fix it on our website: BestEssayCheap.com

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