Verified Document

Ratio Analysis The Vanguard Group, Thesis

e) Total asset turnover = Revenues / Assets = 1,680,000 / 1,250,000 = 1.34 lower that its previous values in 2005 and 2006 and also inferior to the industry average, meaning that the financial service organization has revealed a reduced ability to generate sales through assets.

f) Debt ratio = Total Debt / Total Assets = 666,250 / 1,250,000 = 53.30% - reduced comparative historical evolutions meaning that the company's strength has increased as reliance on debt has been reduced; however, comparative to the industry average, the ratio remains superior, meaning that Vanguard relies on debt more than any other organizations

g) Times interest earned = EBIT / Interest Charges = 70,720 / 15,600 = 4.53 -- this is the highest ratio registered by Vanguard so far to reveal its strength. Significantly higher than its past values and the industry average, the times interest earned...

ned reveals that the company is highly capable to pay its debts.
h) Gross profit margin = (Revenues -- COGS) / Revenues = (1,680,000 -- 1,362,480) / 1,680,000 = 18.90% -- lower than past values and industry average meaning that the company gets to retain fewer dollars in profits after the sale of its products and the deduction of the costs incurred

i) Operating profit margin = Operating Income / Net Sales = 86,320 / 70,720 = 1.22 -- significantly lower than its past values as well as the industry average, meaning that operational efficiency at Vanguard is reduced

j) Net profit margin = Net Profit / Net Revenues = 42,432 / 70,720 = 0.6 -- also lower than its past values and the industry average, meaning that in 2007, the financial service organization has been only limitedly able to control its costs

k) Return on investment = Net Profits / Total…

Sources used in this document:
Reference:

Investopedia, http://www.investopedia.com last accessed on June 3, 2009
Cite this Document:
Copy Bibliography Citation

Related Documents

Mutual Fund Analysis Investment Management
Words: 1190 Length: 3 Document Type: Term Paper

When looking at risk, the fund does have a beta higher than that of its large cap blended peers. The beta of the fund is roughly 1.23 as compared with a beta of 1.04 for many of its peers. This can be attributed to the large concentration in financial stocks which tend to have high betas relative to the market. This is to be expected as financial shares raise disproportionately

Charles Schwab I Writing a Case Analysis
Words: 1118 Length: 3 Document Type: Case Study

Charles Schwab I writing a case analysis Charles Schwab. The essay I ordered helped tremendously. I continue order custom essay's semester guide writing case analysis. Thanks. Generally, detailed analysis a case study Charles Schwab includes areas Charles Schwab: An Overview Analyze the company's history, development, and growth Charles Schwab is one of America's largest financial services firms. It has positioned itself in the financial services market as a firm for the 'average investor.' It

Strategic Options for John Deere and Company
Words: 4435 Length: 15 Document Type: SWOT

JOHN DEERE & COMPANY John Deere This analysis of John Deere presents the external and internal analysis of the company including a SWOT analysis of the company. This analysis is then used to discuss informed strategic options and recommendations for John Deere. The external analysis of John Deere includes the history of the agricultural industry, sources of competitive rivalry in the industry, and a PESTEL analysis of the agricultural and construction equipment industry.

Global Corporate Finance With the
Words: 1983 Length: 7 Document Type: Term Paper

It is also interesting to comment on the article's evaluation of the potential future trends for the companies in developing countries. The article evaluates a closer integration of these companies in the global market. This is something that is potentially bound to happen. Indeed, these companies are already playing a more important role on a regional level by investing in neighbor economies. Recently, a Kazakh corporation purchased a Romanian fuel

Private Military Contractors Private Security
Words: 4504 Length: 14 Document Type: Thesis

During times where they are not needed, this would be a waste of resources. Instead, a PMC is there when the military needs it, and when the mission is over, the military no longer has to spend resources to maintain their personnel. Another benefit, although this is also the source of many ethical challenges as will be discussed later, is a PMC's ability to operate more freely than a state's

Southwest Airline Is One of
Words: 6479 Length: 20 Document Type: Term Paper

And many have got successful too in earning the market share. The emerging competition by new companies is a growing threat for the company and it should be tackled properly to avoid any future disturbances. In order to further describe the competition Southwest Airlines is facing a Competitive Profile Matrix is designed. The following Competitive Profile Matrix tells about the tough competitors which are in a good position to have

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now