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RETURN ON ASSET RATIO The return on asset ratio shows the value 0.13% .The posetive ratio usually shows an upward profit trend as well. Here
RETURN ON ASSET RATIO The return on asset ratio shows the value 0.13% .The posetive ratio usually shows an upward profit trend as well. Here the value is posetive but very low .So ineffective return on asset ratio. b.Return on common equity ratio The ratio shows 0.6% more than 10% is good for investers in invest in company.So Return on investment ratio is very lower than required. c.Gross profit margin Higher gross profit margin indicates that a company can make reasonable profit on sales.10% margin is considered average ,20% is high and 5% margin is low again these guidlines vary widely by company and industry .Here we have (15.78 )which is negative .So we can analyse gross profit margin is not good accorng to these informations d.Operating profit margin Here the ratio is (40.58). Heighr the ratio shows better position of business.In this problem value less than 50% so we cant predict it is a high value. e.Net profit margin Net profit margin shows negative(43.45) figure .So it means that there is loss occuring in the company during this period. f.Cash turnover ratio High turn over ratio means that a company is going through its cash cycle quickly.It shows a greater frequency of cash replenishment: through revenue .But our turn over ratio is not much enough to say better or good. g.Account recievable turn over ratio The ratio 2.05 shows slower collection process and the company 's ability to collect its receivable amount is ineffitient. h.Average account recievable turnover The company collected its average accounts recievable 0.023times over the fiscal years.lt is not a good ratio. i.Inventory turn over ratio. The best turn over ratio is between 4-6. The figure 10.18 shows a high turn over ratio. j.Working capital turn over 0.002 shows a low working capital turn over which is ineffitient. k.PPE Low ppe ratio shows which means $0.0028 in sales revenue for every $1 of PPE Total asset turn over ratio The ratio shows lower asset turn over possibilities m.EPS Basically the share price of company cannot go negative.it means that the company has negative earnings. .Earning yeild The value 284 shows that the company is losing their money. .Divident yeild ratio p.Divident pay out ratio Above both are zero this means company dis able to pay divident .Prize to book Zero, not good. SECTION 2 2.Based on these analysis company in a loss situation it is better to not invest and credit on this company
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