the income statement or the balance sheet?
General characteristics of CFS : Complementing the balance sheet and income statement, the Cash Flow Statements allow investors to understand how a company's operations are running, where its money is coming from, and how it is being spent.
Due to the accrual accounting, the income statements released each quarter may not necessarily reflect change
ROA and ROE of HSBC
For the next asset analysis we are considering data from the period 2004-2009. First let´s take a look to the principal ratios ofthe company. ROA ratio for HSBC has decreased since 2007 and this tendency has continued indicating that the bank efficiency to produce profits has diminished. This is mainly due to the rise in operating expenses by 12% that reflected increased
of this industry and Apple inc. theratios such as P/E, ROE, etc. indicate that Apple made remarkable sales operation, compared the industry. For example, ROE measures how much a firm makes profit in a year. Apple’s ROE is around 8% point higher than that ofthe personal computers industry. Since stocks in this industry as well as Apple’s are sensitive to the economy, they seem to reflect tha
the allowance for doubtful accounts could not be found. However, generally allowance for doubtful accounts is the provision for doubtful accounts. It reflects the company’s credit ratings. It is because when contra asset increases net account receivables decrease, resulting the decrease of assets as well. This all in all causes the increase of debt ratio. Unfortunately, current situation regard
3. Ratio analysis
Test of Profitability
1) Return on Equity (ROE)
Return on equity relates income earned to the investment made by owner. This ratioreflects the simple fact that investors expect to earn more money if they invest more money. SK Energy’s ROE in 2008 is 13.1% (I already explained this measure above). As a result, SK Energy earned 13.1 percent on the owner’s investment. By co