Ratio Analysis Halfords

dimension Analysis for Halfords plc There be a ignite of significant tattleships, which exists between various items at bottom the agreement shred and within the mesh and loss account. There are withal relationships between items in different statements. Ratio depth psychology is the numeration of numerical relationships. The ratios may be expressed as: as a number of times (e.g. 12.5 times earnings) as a ratio of 1 (e.g. 3:1, or 4.2:1) as a percentage (e.g. 10%) The Classification of Ratios. There is no whimsical method of classifying ratios, but a common sort is as follows: lucrativeness The majority of businesses come into being in the want of making profits. Profitpower ratios provide an indication as to their supremacy in achieving this aim. They express the profits made in relation to other key figures in the financial statements. Efficiency in addition referred to as bodily function ratios these measure t he efficiency with which received resources have been used within the business. Liquidity/Solvency These ratios measure the ability of the business to meet its contemporary and future obligations. Investment Ratios These are concerned with assessing the returns and performance of shares in the business. Firstly I result calculate the profitability ratios: Profitability = the relationship between profit and the resources employed in earning it. profitability ratioS Gross Profit Ratio Net Profit ratio Return on slap-up employed Return on shareholders funds |GROSS mesh RATIO | |2008(£m) | |2007(£m) | | | | | | | | | Gross profit x coke |= |402.5 x 100 ! | |376.1 x 100 | |Sales | |797.4 |...If you want to light a full essay, order it on our website: OrderCustomPaper.com

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