... This ratio is useful to the proprietors and prospective investor because it reveals the overall profitability of the concern. It is calculated as: Net Profit Ratio = Net Profit x 100 Net Sales The net profit ratio is designed to focus attention on the net profit margin arising from business before interest and tax is deducted. A high ratio means adequate returns to the owners and enables the ... assets contribute towards sales. When compares with previous period, it indicates weather the investment in fixed assets has been judicious or not. It is calculated as follows: Fixed Assets Turno...

• Word Count: 5556
• Approx Pages: 22
• Has Bibliography
• Grade Level: High School

... Gap's liquidity 2001 2000 1999 Cash provided by operating activities ($ in millions) 1,318 1,291 1,478 Working capital ( $ in millions) 988 (151) 445 Current ratio 1.48:1 0.95:1 1.25:1 Cash Flow = Net Income + Depreciation Current Ratio = Total Current Assets Total Current Liabilities For fiscal 2001, the increase in cash flows provided by operating activities was primarily due to a decrease in merchandise inventory ... and an increase in accrued expense, partially offset by a decrease in net earnings (exclusive of depreciation and amortization). The decrease in working capital and curre...

• Word Count: 4635
• Approx Pages: 19
• Grade Level: High School

... youth; the environment; and disaster preparedness and relief. Home Depot's major competitor is Lowe's Companies, Inc. Lowe's is a 56 years old Fortune 100 company. With its $22 billion of net sales in 2001of a complete line of home improvement products and equipment within its 780 stores in 42 states, it is the world's second largest home improvement retailer and the 14th ... furniture, fixtures and equipment. Improvements to leased premises are amortized using the straight-line method over the live of lease, or the useful life, whichever is shorter. Revenues are recognized, net of estim...

• Word Count: 2783
• Approx Pages: 11
• Grade Level: High School

... (1.829) Dividends per Share - Common Stock 0.000 0.000 0.000 0.000 Gross Dividends - Common Stock 0.0 0.0 0.0 0.0 Stock Based Compensation 206.8 1.1 0.0 0.0 Pro Forma Net Income (999.5) (30.4) (11.0) (4.7) Pro Forma Basic EPS (5.170) (0.435) (0.475) (1.830) Pro Forma Diluted EPS (5.170) (0.435) (0.475) (1.830) Interest ... Current Assets 3.5 0.8 0.0 0.0 Total Current Assets 358.7 106.0 14.3 15.8 Property/ Plant/ Equipment - Gross 65.9 11.6 3.0 1.0 Accumulated Depreciation (9.9) (2.2) (0.8) (0.1) Property/ Plant/ Equipment, Net 56.0 9.4 2.2 0.9 Goodwill, Net 3,287.1 0.0 - - Intangibles, ...

• Word Count: 4155
• Approx Pages: 17
• Has Bibliography
• Grade Level: High School

... expenses.? Microtune's purchases of plant, property and equipment exceeded the depreciation recorded on the books for both 2000 and 2001. In a profitability analysis, Microtune's consistent recording of growing net losses caused their profitability ratios for 2000 and 2001 to be increasingly negative.? Their return on equity, for example, was -24% in 2000 and -29% in 2001, and ... markets currently dominated by the low-tech products.? Microtune's other products, while innovative, will take time to gain a competitive position in the market.? The other method of improving net income is to...

• Word Count: 3312
• Approx Pages: 13
• Grade Level: High School

... in detail on the following lines, the force pushing up Amazon.com comes from net sales, expenses in marketing, technology and in recent years the depreciation of goodwill represents the most important operational expenses5. Net sales6: The value of net sales is calculated including the sales price of products sold, less returns and ... June-2000, the number of customer accounts reached 22.5 million, representing an increase in 110 percent compared to the same date in 1999. Expected net sales at the end of 4Q 2000 are between 950 million and 1.05 billion of US dollars, for 2001 the expec...

• Word Count: 3494
• Approx Pages: 14
• Grade Level: High School

... also ranked The Home Depot as "America's Most Admired Specialty Retailer" for the seventh consecutive year. This company only goes up with increasing net sales and net profit. The main ingredient to Home Depot's success is not only the number of stores there are, but the diverse types of customers ... to the home stores. Overview of the Annual Report Home Depot appears to be doing great by expanding their market and product line. Their net sales and profits continue to increase substantially at an annual basis while continuing to hold a firm lead on the market from their closest competit...

• Word Count: 2350
• Approx Pages: 9
• Grade Level: High School

... offered to tour groups. EXPORT FINANCIAL PLAN The following report represents projected sales of forecast for The Cracker Barrel Old Country Store in Rome, Italy. NET SALES: Restaurant $354,403 Retail 129,690 Net sales 484,093 Franchise fees and royalties 174 Total revenue 484,267 Cost of goods 174,539 Gross profit 309,728 Labor & other related expenses 173 ... 35.9 Other store operating expenses 17.3 Store operating income 10.8 General and administrative 5.0 Amortization of goodwill 0.2 Operating income 5.6 Interest expense 0.7 Pretax income 4.9 Provision for income taxes 1.8 Net income...

• Word Count: 1322
• Approx Pages: 5
• Grade Level: High School

... 000 Gross Margin $10,500,000 Less Selling and Admin Expense Variable Selling and Administration $2,100,000 Fixed Selling and Administration $3,600,000 $5,700,000 Net Operating Income $4,800,000 Unfortunately, by October of the next year it had become clear that the company wouldn't be able to make the $4,800 ... 599,987 Gross Margin $10,400,013 Less Selling and Admin Expense Variable Selling and Administration $2,000,000 Fixed Selling and Administration $3,600,000 $5,600,000 Net Operating Income $4,800,013 3. Do you think Michael Lee should approve the plan to build ending inventories in ...

• Word Count: 1067
• Approx Pages: 4
• Grade Level: High School

... reputation for superior service, in efforts to maintain its lead in a highly competitive sector characterized by rapidly changing technology The two largest competitors of EMC are Sun Micro-systems and Net App. According to a recent independent survey of nearly 400 IT professionals, companies are increasingly looking to vendors that can provide complete storage solutions -- and the supplier they overwhelmingly prefer ... down for a longer period of time. In the third quarter of 2001, 23% of EMC's sales were from Europe. EMC should be able to generate industry-leading gross and net marg...

• Word Count: 1124
• Approx Pages: 4
• Has Bibliography
• Grade Level: High School

... from operators and internet services providers to businesses and consumers. 2. Financial Performance over the last years In million of euros 1999 1998 1997 Net sales 23,023 21,259 28,335 Cost of sales 16,412 15,426 21,389 Gross profit 6,611 5,833 6,946 Income from operations 1,275 997 ... 1,220 Net income 644 2,340 711 Diluted earnings per share 3.44 13.16 4.44 For the year 2000 the expected net sales are 27 millions of euros. 3. Target markets There are mainly three fields Alcatel concentrates on. ... The first sector contains the service-providers and net operators, the second one co...

• Word Count: 1307
• Approx Pages: 5
• Grade Level: High School

... $34 $7 ($16) ($8) ($1) Depreciation & Amortization $3 $3 $2 $1 $0 Operating Income after D & A $31 $5 ($18) ($8) ($2) Other Income (net) $0 $0 $1 $2 N/A Interest Expense $0 $0 N/A $0 $1 Pre-Tax Income (EBT) $0 $5 ($30) ($7) ($2) Net Income from Continuing Operations $31 $5 ($30) ($7) ($2) Net Income from Total Operations $31 $5 ($30) ($7) ($2) Special Income/Charges N/A N/A ($13) N/A N/A Normalized Income N/A $5 ($17) ($7) ($2) Total Net Income $31 $5 ($30) ($7) ($2) Net Income available for Common Shareholders $31 $5 ($30) ($7) ($2) Table 3 - Balance Sheet Highlights: Assets FY End 12 ....

• Word Count: 2136
• Approx Pages: 9
• Grade Level: High School

... other regional telecommunications companies, Verizon continues to suffer from declines in usage of traditional phone services as people rely more on cell phones and the Internet (p.B7). Verizon Wireless had a net gain of 1.3 million retail subscribers and customer growth accelerated from the first and second quarters. Also, Verizon is taking customers from rival carriers like Sprint PCS and Cingular. Therefore, ... will have to create something new for the phone company and to do so they might have to increase the expenses a little to be more technologically advanced. However, their net i...

• Word Count: 388
• Approx Pages: 2
• Grade Level: High School

... to write off the "Deferred Subscriber Acquisition Costs" asset from the Balance Sheet, it recorded an expense of $385,221,000 ($4.03 per share). This reduced both asset account and net income. Journal Entry: Subscriber Acquisition Cost Expense (an expense) $385.2 million Deferred Subscriber Acquisitions Costs (the asset) $385.2 million 5. Which financial ratios will be affected by the charge? ... Any ratios that involve assets, Retained Earnings and Net Income will be affected. Since some of the "Deferred Subscriber Acquisitions Costs" will presumably reverse within a year, they would h...

• Word Count: 1177
• Approx Pages: 5
• Grade Level: High School

... are a company that is very spread out across the world. As an investor I see Honda as a very safe investment. They are a company that has net sales that are around 52,170 million dollars. Their operating income is almost 406.9 billion dollars. In their last fiscal year Honda set a record high in its ... expense. This is needed to keep up with competition. When you are talking about 11.5 million engines sold, your talking about an important company. Their net income was 1,874,423,000 dollars. This is a lot of business. When talking about Honda, you"re talking about a company that has four...

• Word Count: 607
• Approx Pages: 2
• Grade Level: High School

... a quick review of the financial condition of the company. . The balance sheet is prepared on an as needed basis or typically only once a year. The balance sheet will provide the net asset value to the owner as this typically a worse case scenario if the owner was to need to sell solely based on asset value. Listed below is a typical balance sheet ... not used often in both the valuation of the business and loans, it does provide to the owner(s) an opportunity to review several key areas such as return on equity. (Net Income divided by the equity) Vertical Analysis reveals that a large p...

• Word Count: 1858
• Approx Pages: 7
• Has Bibliography
• Grade Level: High School

... Operations 1.04 1.5 Change From Year Ago 6.1% 513.5% 3-Year Annual Earnings Growth 5.17% N/A Profitability Gross Margin 39.7% 52.5% EBITDA Margin 12.8% 10.3% Pre-Tax Profit Margin 10.9% 8.8% Post-Tax Profit Margin 5.1% 7% Net Profit Margin 5.1% 7% Effective Tax Rate 40.3% 31% Shareholdings Market Cap 8,893,834,618 99,479,482,107 Shares Outstanding (Date) 522,859,178 (Aug 30, 2002) 19,807,340,001 ... % Owned by Institutions 78.8% N/A No. of Institutional Holders 309 N/A % Owned By Insiders 4.7% N/A Net Trading By Insiders 123,176 N/A Short-Interest Ratio 3.8 N/A Volume Last Week 9,623,40...

• Word Count: 1848
• Approx Pages: 7
• Has Bibliography
• Grade Level: High School

... one firm took advantage of borrowed money still earning the same on investment as the first firm but only contributed half as much money. The interest does take away from net earnings but the firm only used half of the cash as the first firm did. The result worked in favor of the second firm and that is how financial leverage ... . The risk to leverage borrowed money lies in the opposite direction that may occur when you receive less money from the investment causing the company to pay more out of net income for the interest expense. The result can have some serious consequences on the f...

• Word Count: 545
• Approx Pages: 2
• Grade Level: High School

... 55,863 General & Administrative 6,534 15,849 43,919 73,027 Operating Income 9,983 12,765 -3,373 34,994 Operating Margin 24.13% 14.82% -1.50% 8.11% Net Income 7,061 7,273 9,567 48,294 Diluted Net EPS $0.08 $0.06 $0.04 $0.17 eBay has been profitable since its founding and reported 1998 revenue of $47.35 million, up from $5.7 million in 1997, with ... net income of $2.4 million last year. The company has very high gross margins -- over 80%. Gross margins represent what it costs the company for every dollar of revenue. With eBay, each ... ...

• Word Count: 1606
• Approx Pages: 6
• Grade Level: High School

... quarter of 1995 DuPont reported earnings per share of $1.70, up 47 percent from the $1.16 earned in the second quarter 1994. Net income totaled $938 million, compared to $792 million earned in 1994. Both earnings per share and net income increased 27 percent."These outstanding results continue to reflect strong revenue gains and ongoing productivity improvements," said DuPont Chairman Edgar S.Woolard ... third quarter of the 1995 business year led DuPont to a $1.38 per share earning. This number exceeded the $.95 earned in the third quarter of 1994 by more than 45%. Net income totaled $...

• Word Count: 1075
• Approx Pages: 4
• Grade Level: High School

... competition. Profit margin percentages is another area in which Lone Star is not ahead of it's the industry average. Last year, its net profit margin was 3.84 points lower than the industry mark of 6.0. Lone Star's five-year average of net profit margin was also lower at 4.6 to the industry mark of 5.9. The distance between Lone Star's profit margin and that of ... on equity rose, then dropped slowly and steadily, then rose slowly. The return on assets behaved in exactly the same way that return on equity did. This could mean that net income during that time behaved in a similar way bec...

• Word Count: 751
• Approx Pages: 3
• Grade Level: High School

... cost of each type of media). Our total expenses are £28528. NP & GP % Based on our balance sheet (appendix?) we have made a gross profit of £29 088 and a net profit of £10560. However we did make a loss in the first 2 months (refer to appendix) but from our 3rd month onwards we have been making a profit which gradually increases ... . This indicates that our business is improving. Our losses were due to the.reasons Our gross profit percentage is 80%, so for every pound spent we make 80 pence. Our net profit percentage is 30% which mean our business makes this amount overall for each p...

• Word Count: 1351
• Approx Pages: 5
• Grade Level: High School

... building an image. The third, and most crucial, issue that is contributing to the continued loss of revenue is MMA's costs are exceeding their revenue. Since 1997, MMA has incurred a net loss every year. Before a solution can be made there needs to be an analysis of each component within the museums marketable objectives. The first objective that needs to be evaluated ... ,000 -26.40% Museum gift shop 1,679,294 Skyline Buffet 592,051 Museum parking 31,168 Museum association 344,955 Expenses from auxiliary 3,247,468 Profit from auxiliary $615,257 Net income $28,140 *Own suggestions...

• Word Count: 848
• Approx Pages: 3
• Grade Level: High School

... year since 1955. The compounded growth rate for the past five years has been 7%. Its expected growth is 5-6% per year. In 1984 standard desk calendar pads had contributed 80% of net sales and 90% of earnings before taxes. The company has high fixed costs since production is highly automated. John M. Case Co. holds 60-65% of calendar market. However, cutting production ... was 60 days. The company operates with all-equity capitalization but maintains a $2 million line of credit at a major Eastern bank. Over the past three years the dividends averaged 70% of net earnings. The Case Company...

• Word Count: 384
• Approx Pages: 2
• Grade Level: High School

... % 10 % Americas 7 % 4 % Financial highlights for the last three years: Year ended 31 May 2001 2000 1999 Revenues 8,777 9,553 9,186 Cross Margin 3,342 3,109 3,867 Cross Margin % 39.5% 34.3% 44.1% Net Income 451 400 796 Basic earnings per common share 1.59 1.38 2.76 Return on equity 13.7% 12.5% 28.5% Millions of dollars 2001 2000 1999 Revenues 8,777 9,553 9,187 Cost & Expenses ... & Administrative 2,426 2,624 2,304 Interest expense 44 60 52 Other expense 21 21 32 Restructuring charge 45 129 Income before income taxes 746 653 1,295 Incomes taxes 295 253 499 Net income 451 400 796 The Unite...

• Word Count: 1892
• Approx Pages: 8
• Grade Level: High School