Finance research project Paper Example | Topics and Well Written Essays - 2500 words

Finance project - Research Paper ExampleTo do the analysis about the current situation of the phoner a ratio analysis has been performed over the 3 years financial data of the companies. The various ratios that have been coded are Profitability Ratios, Asset utilization Ratios, liquid (Solvency) Ratios, Debt Utilization Ratios and Market Value Ratios. We shall now discuss the various ratios in detail.These are the ratios which show the ability of a firm to earn profits (Profitability Ratios, 2010). It helps to calculate the profit earning capability of a company with respect to the sales, assets and other such expenses. The various ratios under this areThis calculates the amount of earnings for a company from all(prenominal) dollar of sales (Peaveler, 2010). This is calculated as simoleons profit divided by the revenue or sales (Profitability Ratios, 2010). The higher the profit margin the let out the company and its operations (Profitability Ratios, 2010).This ratio basically calculates the efficiency with which a firm uses its fixed assets to generate profits (Peaveler, 2010). This can be calculated by dividing the net profit by the total amount of fixed assets (Peaveler, 2010). The higher the ROA the better the company and its management are (Profitability Ratios, 2010).This ratio calculates the profit that a company is earning over the investment of shareholders (Peaveler, 2010). This can be calculated by dividing the net profit by the total shareholders equity of the firm (Peaveler, 2010). The higher the ROE the better the company is (Profitability Ratios, 2010).These ratios tell the management how well they have been using their assets to generate sales (NIMS, 2010). They give valuable insight about the internal operations of the firm and then the management could take the required steps to improve the same. The various ratios have been discussed hereunderThis ratio indicates as