Business ratios and formulas a comprehensive guide Essay Example for Free

Business ratios and formulas a comprehensive guide Essay Net profit margin of the company shows how much the profit after-tax profit made by a business for every $1 generated in revenue or sales (Bragg, 2008). A higher net profit margin is better in comparison to that of its competitors. In 2011 and 2012, Tesco was more profitable followed by Morrison’s Supermarkets PLC. However, in 2013, Morrison’s Supermarkets PLC was more profitable followed by Sainsbury.Roce This financial ratio measures the profitability and efficiency of a company with which its capital is employed (Bragg, 2008). In 2011, Tesco was more profitable than Morrison’s Supermarkets PLC and Sainsbury. The following year, it was overtaken by Morrison’s Supermarkets PLC while Sainsbury remained the least profitable. In year 2013, Morrison’s Supermarkets PLC was the most profitable company followed by Sainsbury. Return on Equity – ROE             Return on equity shows how much profit a firm earned compared to the total amount of shareholder equity as contained in the balance sheet (Horrigan, 2010). In 2011, Tesco made a higher profit than Morrison’s Supermarkets PLC and Sainsbury. It was Morrison’s Supermarkets PLC . in year 2012 Morrison’s Supermarkets PLC and Sainsbury reported a higher profit compared to the previous year while Tesco reduced it profitability. However, the three companies reported lower profit in 2013 than in 2011 and 2012. Morrison’s Supermarkets PLC was more profitable followed by Sainsbury in 2013. Gross Profit Margin             It is used to assess company’s financial health by showing the proportion of money that is left over from sales revenue after deducting the cost of goods sold. It shows the financial health of a company (Jenkinson, 2011). In 2011, Tesco had the highest financial health followed by Morrison’s Supermarkets PLC. In year 2012, all the three companies reported lower gross profit margin. Morrison’s Supermarkets PLC and Sainsbury have had a stable gross profit margin.Net asset turnover This is a financial measurement intended to measure how a company turns its assets into revenue (Horrigan, 2010). In 2011, Sainsbury was the most efficient company in turning assets into revenue compared to Morrison’s Supermarkets PLC and Tesco. Tesco was performed the least in turning assets into revenue. In 2012, all the three companies had a lower net asset turnover with Sainsbury having the higher ratio followed by Morrison’s Supermarkets PLC. In 2013, Tesco and Sainsbury increased their ratio while Morrison’s Supermarkets PLC’s ratio decreased. Sainsbury still had the highest ratio followed by Morrison’s Supermarkets PLC.Efficiency and effectiveness Ratios Asset turnover ratio             This is a ratio of a firms sales to its assets. It is an efficiency ratio that shows how successfully a company uses its assets to generate revenue. A comparison of asset turnover ratio for the three companies shows that in 2011 Sainsbury was the most efficient company followed by Tesco in turning assets into revenue. In 2012, Tesco showed a decrease in efficiency which the other two companies increased theyre efficient. All the three companies increased their efficiency in using assets to generate sales with Morrison’s Supermarkets PLC having the highest ratio followed by Sainsbury (Jenkinson, 2011). The debtor’s day’s ratio             It is a measure of how quickly cash is collected from debtors. Different periods are compared for the same company since it is less meaningful since results largely depend on the nature of the business. Tesco is the most efficient company in collecting cash. Morrison’s Supermarkets PLC and Sainsbury have also been decreasing the number of days with Tesco having a lower collection period (Novak, 2009). Supplier credit days This shows the number of days that a company takes to pay its suppliers (Novack, 2009). In 2011 and 2012, the numbers of days for Morrison’s Supermarkets PLC and Sainsbury has been increasing which can be a sign of financial hardship or increase confidence of suppliers on the company. Tesco has a high ratio which could be a sign of a financial crisis. Stock holding period             It refers to the period between the purchase of a product and its sale. There is a general decrease in the stock holding period for the three companies indicating an improvement in investment performance. Sainsbury have the highest holding period followed by Morrison’s Supermarkets PLC (Palmer, 2013). Liquidity and capital ratiosQuick Ratio             This determines if the company has resources to pay its short term liabilities with its liquid assets. The analysis shows that Morrison’s Supermarkets PLC has the highest ability to pay its short-term debt followed by Sainsbury (Peles, 2008). Quick ratio             It measures how a company can use its near cash or quick assets to retire its current liabilities immediately. Analysis shows that Morrison’s Supermarkets PLC has the highest ability to convert its near cash items into cash in order to pay the debt followed by Sainsbury.Gearing ratiosDebt/equity ratio It shows how a company finances its growth. Sainsbury has the highest debt in its capital structure compared to Tesco and Morrison. Tesco has the least debt ratio (Peles, 2008). Times interest covered             This ratio is a measure of number of times a business can make the interest payments with its earnings on its debt before interest and taxes. Morrison has the lowest possibility of bankruptcy followed by Sainsbury. Capital gearing ratio             It measures financial strength of a company. Tesco is a high risky investment to investors. In 2013, Morrison was second after Tesco in terms of riskiness. Investors expect a high return in the future in Sainsbury compared to Morrison and in Tesco. Dividend yield             It shows how much a company pays out the shareholders in divided relative to share price. Sainsbury have the highest dividend yield showing that investors get a lot of funds for investing in Sainsbury. When share price increases, shares with high dividend yield earn more cash. Investors who need cash prefer investing in shares that have high dividend yield. Dividend cover             This shows the number of times dividends of a company paid to shareholders can be paid out of annual profits after tax. It is an indication of the probability which shows that dividends can be maintained in the future. In 2013, Morrison had the highest divide cover followed by Sainsbury (Shimerda, 2011).Corporate strategy Morrison’s Supermarkets PLC can increase its profitability by using Tesco as a benchmark for its operations. This is because Tesco has a higher net profit margin and Return on capital employed. Morrison’s Supermarkets PLC has not been effectively in efficiently utilizing their assets in generating more revenue. It should ensure that acquisitions are attractive and that they help the company increase its return. It should also ensure that they produce better products and services in order to combat competition. Some assets should also be sold. Morrisons Supermarkets PLC should also reduce the amount of debt from their capital structure. This is because it ranks second after Tesco in terms of capital gearing ratio. Debtor’s collection period should be reduced to a minimum. References Bragg, S. M. (2008). Business ratios and formulas a comprehensive guide. Hoboken, N.J.: Wiley. Horrigan, J. O. (2010). Financial ratio analysis: an historical perspective. New York: Arno Press. Jenkinson, N. H. (2011). Investment, profitability and the valuation ratio. London: Economics Division, Bank of England. Novack, D. E. (2009). Liquidity Ratios And Recent British Monetary Experience. The Journal of Finance, 13(4), 510-526. Palmer, J. E. (2013). Financial ratio analysis. New York, N.Y.: American Institute of Certified Public Accountants. Peles, Y. C., Schneller, M. I. (2008). Liquidity Ratios and Industry Averages-New Evidence. Abacus, 15(1), 13-22. Schmidgall, R. S., Defranco, A. L. (2009). Ratio Analysis: Financial Benchmarks for the Club Industry. The Journal of Hospitality Financial Management , 12(1), 1-14. Shimerda, T. A. (2011). Financial ratios as predictors of profitability. Ann Arbor, Mich.: University Microfilms International. Source document

Health Care in the Global South Essay -- traditional medicine

Health care and usage in the global south has always been a phenomenon of interest to both researchers and policy makers alike. This keen interest is embedded in the special demographic characteristics of this part of the world coupled with poverty and underdevelopment. This region has more than 50% (5.8 billion) of the world’s 7 billion population and a natural population growth rate of over 2% (Population Reference Bureau 2013); coupled with this huge demographic character is high rate of poverty, conflict, famine and high prevalence of infectious and communicable diseases. Compound to this plight, is a weak and bad biomedical health system which barely serve just about 20-30% of its population (Neumann and Lauro 1982). However, a phenomenon of interest in this health catastrophe is the traditional medicine system and its wide usage by the population in many countries in the south. The diversity of traditional medicine and its integration with the culture and beliefs of many societies in the south has encouraged studies and research over the years. The aim of these studies have been to understand the nature of traditional medicine and its ability to succeed where biomedicine has failed – access and usage; it is estimated that up to 80% of the population in the global south depends on Traditional medicine to meet their care needs (WHO 2002) With the colonization of many countries in the global south, came western lifestyle and social institutions. These social institutions included religion and health. From the onset of colonialism, the colonial leaders in the global south championed the course of teaching and training the indigenes in this region in western ideologies and practices which will foster their development. This s... ...frican countries. International nursing review, 50(4), 242-250. Twumasi P.A. 1987. Evaluation of Traditional Birth Attendants Programme in Ghana. Ministry of Health. Accra Twumasi P.A. 1988. Social Foundations of the interplay between Traditional and Modern Medical Systems. Ghana Universities Press. Accra World Bank 2010. Poverty and Equity Data. Accessed 20th May, 2014 http://data.worldbank.org/topic/poverty WHO 2000. Development of National Policy on Traditional Medicine. Manila. WHO 2001. Legal Status of Traditional Medicine and Complementary/Alternative Medicine: A World Wide Review. Geneva: World Health Organization WHO 2002. WHO traditional medicine strategy 2002-2005. Geneva: World Health Organization WHO 2007. World health statistics 2007. Geneva: World Health Organization WHO 2011. World Health Statistics 2011. Geneva: World Health Organization

Commonly Confused Words

Accept / Except Affect / Effect A Lot / Alot Allusion / Illusion All Ready / Already Altogether / All Together Apart / A Part Ascent / Assent Breath / Breathe Capital / Capitol Cite / Sight / Site Complement / Compliment Conscience / Conscious Council / Counsel Elicit / Illicit Eminent / Immanent / Imminent Its / It's Lead / Led Lie / Lay Lose / Loose Novel Passed / Past Precede / Procede Principal / Principle Quote / Quotation Reluctant / Reticent Stationary / Stationery Supposed To / Suppose Than / Then Their / There / They'reThrough / Threw / Thorough / Though / Thru To / Too / Two Who / Which / That Who / Whom ACCEPT-to receiveex: He accepts defeat well. EXCEPT-to take or leave outex: Please take all the books off the shelf except for the red one. AFFECT-to influenceex: Lack of sleep affects the quality of your work. EFFECT-n. , result, v. , to accomplishex: The subtle effect of the lighting made the room look ominous. ex: Can the university effect such a change without disruptin g classes? A LOT (two words)-many. ALOT (one word)-Not the correct form.ALLUSION-an indirect referenceex:The professor made an allusion to Virginia Woolf's work. ILLUSION-a false perception of realityex: They saw a mirage: that is a type of illusion one sees in the desert. ALL READY-preparedex: Dinner was all ready when the guests arrived. ALREADY-by this timeex: The turkey was already burned when the guests arrived. ALTOGETHER-entirelyex: Altogether, I thought that the student's presentation was well planned. ALL TOGETHER-gathered, with everything in one placeex: We were all together at the family reunion last spring.APART-to be separatedex: The chain-link fence kept the angry dogs apart. OR My old car fell apart before we reached California. A PART-to be joined withex: The new course was a part of the new field of study at the university. OR A part of this plan involves getting started at dawn. ASCENT- climbex: The plane's ascent made my ears pop. ASSENT-agreementex: The martian a ssented to undergo experiments. BREATH-noun, air inhaled or exhaledex: You could see his breath in the cold air. BREATHE-verb, to inhale or exhaleex: If you don't breathe, then you are dead.CAPITAL-seat of government. Also financial resources. ex: The capital of Virginia is Richmond. ex: The firm had enough capital to build the new plant. CAPITOL-the actual building in which the legislative body meetsex: The governor announced his resignation in a speech given at the capitol today. CITE-to quote or documentex: I cited ten quotes from the same author in my paper. SIGHT-visionex: The sight of the American flag arouses different emotions in different parts of the world. SITE-position or placeex: The new office building was built on the site of a cemetery.COMPLEMENT-noun, something that completes; verb, to completeex: A nice dry white wine complements a seafood entree. COMPLIMENT-noun, praise; verb, to praiseex: The professor complimented Betty on her proper use of a comma. CONSCIENCE-s ense of right and wrongex: The student's conscience kept him from cheating on the exam. CONSCIOUS-awakeex: I was conscious when the burglar entered the house. COUNCIL-a group that consults or advisesex: The men and women on the council voted in favor of an outdoor concert in their town. COUNSEL-to adviseex: The arole officer counseled the convict before he was released. ELICIT-to draw or bring outex: The teacher elicited the correct response from the student. ILLICIT-illegalex: The Columbian drug lord was arrested for his illicit activities. EMINENT-famous, respectedex: The eminent podiatrist won the Physician of the Year award. IMMANENT-inherent or intrinsicex: The meaning of the poem was immanent, and not easily recognized. IMMINENT-ready to take placeex: A fight between my sister and me is imminent from the moment I enter my house.ITS-of or belonging to itex: The baby will scream as soon as its mother walks out of the room. IT'S-contraction for it isex: It's a beautiful day in th e neighborhood. LEAD-noun, a type of metalex: Is that pipe made of lead? LED-verb, past tense of the verb â€Å"to lead†ex: She led the campers on an over-night hike. LIE-to lie down (a person or animal. hint: people can tell lies)ex: I have a headache, so I'm going to lie down for a while. (also lying, lay, has/have lain–The dog has lain in the shade all day; yesterday, the dog lay there for twelve hours).LAY-to lay an object down. ex: â€Å"Lay down that shotgun, Pappy! † The sheriff demanded of the crazed moonshiner. ex: The town lay at the foot of the mountain. (also laying, laid, has/have laid–At that point, Pappy laid the shotgun on the ground). LOSE–verb, to misplace or not winex: Mom glared at Mikey. â€Å"If you lose that new lunchbox, don't even think of coming home! â€Å"LOOSE–adjective, to not be tight; verb (rarely used)–to releaseex: The burglar's pants were so loose that he was sure to lose the race with the cop chas ing him. x: While awaiting trial, he was never set loose from jail because no one would post his bail. NOVEL-noun, a book that is a work of fiction. Do not use â€Å"novel† for nonfiction; use â€Å"book† or â€Å"work. â€Å"ex: Mark Twain wrote his novel Adventures of Huckleberry Finn when he was already well known, but before he published many other works of fiction and nonfiction. PASSED-verb, past tense of â€Å"to pass,† to have movedex:The tornado passed through the city quickly, but it caused great damage. PAST-belonging to a former time or placeex: Who was the past president of Microsquish Computers? x: Go past the fire station and turn right. PRECEDE-to come beforeex: Pre-writing precedes the rough draft of good papers. PROCEED-to go forwardex: He proceeded to pass back the failing grades on the exam. PRINCIPAL-adjective, most important; noun, a person who has authorityex: The principal ingredient in chocolate chip cookies is chocolate chips. ex: The principal of the school does the announcements each morning. PRINCIPLE-a general or fundamental truthex: The study was based on the principle of gravity. QUOTE-verb, to citeex: I would like to quote Dickens in my next paper.QUOTATION-noun, the act of citingex: The book of famous quotations inspired us all. RELUCTANT-to hesitate or feel unwilling ex: We became reluctant to drive further and eventually turned back when the road became icy. RETICENT-to be reluctant to speak; to be reserved in manner. Note that The American Heritage Dictionary lists â€Å"reluctant† as a synonym for â€Å"reticent,† as the third definition. For nuance and variety, we recommend â€Å"reticent† for reluctance when speaking or showing emotion (after all, even extroverts can become reluctant). ex: They called him reticent, because he rarely spoke.But he listened carefully and only spoke when he had something important to say. STATIONARY-standing stillex: The accident was my fault becau se I ran into a stationary object. STATIONERY-writing paperex: My mother bought me stationery that was on recycled paper. SUPPOSED TO-correct form for â€Å"to be obligated to† or â€Å"presumed to† NOT â€Å"suppose to†SUPPOSE-to guess or make a conjectureex: Do you suppose we will get to the airport on time? When is our plane supposed to arrive? We are supposed to check our bags before we board, but I suppose we could do that at the curb and save time.THAN-use with comparisonsex: I would rather go out to eat than eat at the dining hall. THEN-at that time, or nextex: I studied for my exam for seven hours, and then I went to bed. THEIR-possessive form of theyex: Their house is at the end of the block. THERE-indicates location (hint: think of â€Å"here and there†)ex: There goes my chance of winning the lottery! THEY'RE-contraction for â€Å"they are†ex: They're in Europe for the summer–again! THROUGH-by means of; finished; into or out ofex: He plowed right through the other team's defensive line.THREW-past tense of throwex: She threw away his love love letters. THOROUGH-careful or completeex: John thoroughly cleaned his room; there was not even a speck of dust when he finished. THOUGH-however; neverthelessex: He's really a sweetheart though he looks tough on the outside. THRU-abbreviated slang for through; not appropriate in standard writingex: We're thru for the day! TO-towardex: I went to the University of Richmond. TOO-also, or excessivelyex: He drank too many screwdrivers and was unable to drive home. TWO-a numberex: Only two students did not turn in the assignment.WHO-pronoun, referring to a person or personsex: Jane wondered how Jack, who is so smart, could be having difficulties in Calculus. WHICH-pronoun, replacing a singular or plural thing(s);not used to refer to personsex: Which section of history did you get into? THAT-used to refer to things or a group or class of peopleex: I lost the book that I bought la st week. WHO-used as a subject or as a subject complement (see above)ex: John is the man who can get the job done. WHOM-used as an objectex: Whom did Sarah choose as her replacement? Back to ‘Commonly Confused Words' or ‘Clarity and Style'Copyright 2010

Biography of Lugenia Burns Hope