Accounting information for decision making

PART 1 - Problem resolving (5%) The six ratios (i.e. realizeability, Efficiency, Liquidity, Gearing (leverage), enthronisation and Finance Strength (stability)) shall be utilise to provide the better(p) epitome possible for the directors of Helena sweetie Products Ltd. The formula and the guides to test the ratios argon credited to a consec placed investment website www.investopedia.com/university/ratio. The website provides breeding for those whom research basic understanding and practice of ratios for managerial consideration. -PROFITABILITY RATIO Return on Assets (ROA) = 2006 ROA = 2007 ROA = ROA is used to show how much income that broker identifyd from the complete assets / invested capital. According to the calculation, theres a slight improvement in the cyberspaceability from 2006 to 2007. From the managerial perspective, the fraternity should try to increase the cyberspace profit and reduce the full(a) investment. Simply put, the company must(prenominal) try to optimize the utilization of the assets owned / already invested by the company in feel out to obtain higher profits. In general, the company is in dear(predicate) shape as the ROA is electrostatic and have a direction toward arbitrary increase. Return in Owners right (ROE) = 2006 ROE = 2007 ROE = ROE informs the rate of how much the divisionholders earned from what their share to the companys capital. The company shows a positive(p) trend in 2006 to 2007.

This shows that the shareholders wampum are increasing although very slowly. Positive movement in ROE volition devolve positive impression to more(prenominal) investors who interested to invest close to capital in the company. For a company that relies heavily on investors, positive and strong emergence of ROE is very important. present-day(prenominal) shareholders excessively feel safe and will have innovation to hold open the money in the like company. force out Profit strand = 2006 Net Profit gross profit margin = 2007 Net Profit Margin =... If you want to arse about a full essay, clubhouse it on our website: Orderessay

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