Apple, Best Buy and Symyx Technologies

Apple, Best Buy and Symyx Technologies Team D Accounting ACC561 May 9, 2010 professor Myrtle Clarke Financial masterys and proportionality analysis atomic number 18 astray utilise in todays business environment as a way to evaluate a degradeds monetary position. Although financial statements and ratio analysis are limited, these tools are designed to provide necessary guidelines and strategies for making certified managerial and financial business decisions. Financial management focuses on where to get cash and how to use cash for the benefit of the makeup (Horngren,739). Financial managers use financial statements to develop financial ratios, which highlights authorized areas to demonstrate the troupes position. Firms use financial analysis to make sound financial decisions. They withal use financial ratios to measure its level of financial risk and profitability ratios for their financial profit. This paper will demonstrate the financial position of the pursuit three companies selected by Team D, Apple, Best Buy and Symyx Technologies. DuPont Ratio The DuPont ratio, which is also known as the Return on Equity (ROE), is used to analyze the profitability of a come with using elements of the income statement with those of the balance sheet.

The DuPont ratio is also used to predict future tense performance, develop investment strategies and assess capital needs. The DuPont analysis tells us that the ROE is affected by three things, operating efficiency, which is calculated by profit margin, Asset use efficiency, which is measured by total asset turnover and Financial leverage, which is measured by the equity multiplier (Investopedia, 2010). Best Buys DuPont ratio is 6.246, Apple 2.751 and Symyx .0104. Although Best Buys ratio is relational high, it is a positive sign for the company because of the increase in their net profit. Liquidity Ratios Liquidity ratios detail a companys ability to meet its short-term obligations. A companys liquidity can be measured using... If you deprivation to get a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!