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    jeepey's Avatar
    jeepey Posts: 19, Reputation: 1
    New Member
    		  
    #1

    Apr 13, 2007, 01:41 AM
    Analyzing financial data
    Hi there,

    I have calculated the following figures from some raw data, but I am struggling to interpret what it mean in terms of the companies performance over the 2 years. I've not had much experience in analysis of financial statements.
    Does anyone know from the figures what the state of the company and the performance in 2006?


    Profitability Ratios

    Return on ordinary shareholder funds (ROSF)
    05- 25.0% 06- 16.7%
    Return on capital employed (ROCE)
    05- 52.2% 06- 25.5%
    Net profit margin
    05- 30.0% 06- 13.9%
    Gross profit margin
    05- 40.0% 06- 33.3%

    Efficiency Ratios

    Average stock turnover period
    05- 1095 Days 06- 1387 Days
    Average settlement period for debtors
    05- 45 Days 06- 121 Days
    Average settlement period for creditors
    05- 6 Days 06- 174 Days
    Sales to capital employed ratio (or asset turnover ratio)
    05- 1.4 Times 06- 1.5 Times

    Liquidity

    Current ratio
    05- 1.12 06- 1.16
    Acid test ratio
    05- 0.696 06- 0.970

    Gearing

    Gearing ratio
    05- 17.9% 06- 16.9%
    Interest cover ratio
    05- 3.2 06- 4.17

    Investment Ratios

    Dividend per share
    05- 2.00p 06- 1.25p
    Divident payout ratio
    05- 44.4% 06- 38.5%
    Dividend yield ratio
    05- 1.09% 06- 0.87%
    Earnings per share =
    05- £0.50 06- £0.375
    Price to earnings ratio (P/E)
    05- 4.6 Times 06- 4.8 Times


    Thanks in advance
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Apr 13, 2007, 08:35 AM
    Take a look at this website: Fundamental Analysis - Analyzing using Financial ratios

    It is very good at explaining a whole bunch of those ratios and what they mean and how to interpret them.
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