Analysis Report Of Financial Statement

Analysis report of Financial pedagogy About Sino demesne Co.Ltd for the sextet months ended thirty-first December,2006 Kevin Xue ------ 15 December 2008 As a successful investor,we must analyse the firms fiscal health before we investing.And the basic financial proportions which foot plant us insights into different aspects of a firms financial health are about profitablity,liquidity,debt, asset legal action,and mart value. Profitablity ratios: From the Financial statement of Sino Land Co.Ltd for the six months ended 31st December,2006, We can keep an eye on that the turnover of the congregation for the interim gunpoint increase 24.9% from HK$918.5million to HK$1147.9 million,and earning per conduct increased 40% from 24.73cents to 34.68cents.and the gross profit margin of 2006 change magnitude from 68.4% of 2005 to 63.2%, which implies that the beau mondes ability of cost control slash a diminished; and the net profit margin increased from 1.166 to 1.357,the return on assets increased from 1.59%to 2.29%, the return on virtue increased from 2.69%to 3.61%,which implies that the confederacys abilities to return profit from assets and faithfulness were not actually high,but the gallerys were climing up.

Liquidity ratios: The current ratio of the latter(prenominal) half of 2006 increased from 3.72 to 3.86,which indicates that the family could pay all its short-term debts by liquidating about a quarter of its current assets. And the trend was also arising. And the Ac id ratio decreased from to 1.45 to 1.08,beca! use the companys history is not actually heard to liquidate,the figure is not so important. Debt ratios: The debt ratio decreased from 40.8% to 36.5%,which indicates that the percentage of the firms assets financed with debt was much lower ,and the company became safer than before . Asset activity ratios: The average collection period at 31st December,2006 was 170days, and inventory turnover was 0.06, and the total asset turnover was 0.022 which maybe...If you want to get a full essay, holy order it on our website: BestEssayCheap.com

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