Return on Assets (ROA) Analysis
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how helpful management is at using its assets to produce profit (Groves & Edward, 2004). Calculated by dividing a company's annual wages by its total assets, ROA is displayed as a percentage. The computed ROA figure and its graph is mentioned below,
UPS ROA
Years
Total Assets
Net Profit
ROA
in million U.S.$
in million U.S.$
2006
33,210
4,202
12.65
2007
39,042
14,014
35.89
2008
31,879
13,545
42.49
2009
31,883
10,838
33.99
2010
33,597
12,478
37.14
Mean ROA
32.434
ROA apprise an investor that how much the assets of a company are fruitful for it. It is one of the most authentic and widely used measures to assess the efficiency of an organization in generating profit from its assets. High ROA figure is always positive for the organizations. The ROA of UPS was 12.65% in the year 2006 and then increased by 23.24% in the year 2007 because of the extraordinary growth of the Net Income (NI). The Net Income of the company increased by 233% in the year. The ROA of the company increased by 659 basis points in the year 2008 as compared to the figure of the same period of last year. The year 2009 was the toughest year for the company, according to the management & discussion (M&D) section of the annual report of the company. Current economic downturn decreased the level of ROA of the company by 8.50% in the year 2009 but then increased by 3.15% in the year later. The mean ROA of UPS is 32.43% which means that the company is able to generate 32$ of revenue from each of its assets, which shows that the operating assets of the company are not only productive but cost efficient as well.
Return on Equity Analysis
We can evaluate a company's fiscal stability ad vigor by the help of ROE ratio. The intent of this ratio is to obtain an idea about the yield or profit a crowd gains on its justness, which they put while startup the industry. Shareholders are much more worried with the profitability of the visitors and simply stress on ROE. The computed ROE of the company along with the graph is mentioned below,
UPS ROE
Years
Total Equity
Net Profit
ROE
in million U.S.$
in million U.S.$
2006
15,482
4,202
27.14
2007
12,183
14,014
2008
6,780
13,545
2009
7,630
10,838
2010
7,979
12,478
Mean ROE
The result computed through the ROE is almost identical of ROA. The ROE of the company was 27.14% in the year 2006 which is also very good for a company. Two consecutive years increment had been envisaged by 115.03% and199.78% for year 2007 and 2008 respectively. Due to the current economic downturn the ROE of the company decreased by 57.73% in the year 2009 as compared to the ROE of last year. The ROE of the company increased by 14.34% in the year 2010 which makes the mean ROE of 128.076% which clearly shows that the shares of the company are very famous among the shareholders. The next heading totally pertains to the liquidity ratio analysis.
Liquidity Ratios Analysis
Liquid means profitable in the term of finance. Liquid is that thing which can be converted into cash instantly (Martin & Fernando, 2002). There are two ratios which come under the ambit of liquidity ratios. There are two types of liquidity short-term liquidity and long-term liquidity. Short-term liquidity usually analyze with the Current Ratio (CR) while long-term liquidity can be judge from debt to equity ratio.
Current Ratio Analysis
Current ratio is the most important ratio used to analyze the overall management of the company. It will apprise the investor and investors regarding the propensity of the organization to meet its short-term financial obligations. A current ratio above 1 will be desirable for the companies to achieve. Below mentioned is the computed result along with the chart of CR.
UPS CR
Years
Current Assets
Current Liabilities
CR
in million U.S.$
in million U.S.$
2006
9,377
6,719
1.40
2007
11,760
9,840
1.20
2008
8,845
7,817
1.13
2009
9,275
6,239
1.49
2010
11,569
5,902
1.96
Mean CR
1.434
The CR is the widely used ratio to check the short-term liquidity of a company. UPS has a CR of more than 1 throughout the analytical period which is a clear indication that the company has been effectively complying with the short-term obligations and never sold its inventories to meet with its financial promises. After the year 2008, the CR of the company is increasing which is indeed a positive sign for the organization. The average CR of the company is 1.4 which identifying the stance that the company has always met with its short-term obligations and thus it is highly liquid especially in the short-term.
Marketing Strategy) supporting sections 1-8-3.0 Marketing Strategy 3.1 Mission 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Markets 3. Grill Kabob's mission will be ensuring that each customer gets prompt, friendly, professional, and courteous service. Have a comfortable, well maintained, and clean premise for customers and staff. Providing fairly priced, healthy, well prepared, and nutritional meals. Treating all customers and staff with dignity and the respect they deserve. Thanking each
In other words, the facilities that are available will be laid out in the best possible pattern and fashion so as to maximize efficiency and convenience for people who use the services (Handler & Mirchandani, 1979). There is obviously no way to put all of the facilities into the same space, and some of them take up more land than others, but there is no reason that urban planning
Company audit occurs when there is need to examine the performance of a big company especially the financial and the accounting records over a given period of time. Professionals such as the certified public accountant always do the auditing. The audit of a company is significant in the verification of accuracy particularly in the accounting records. A company like coca cola will need an audit to help in verifying their
Short-term wins creation In this case, the insistence is on the enhancement of credibility for change through demonstrating gains made. In the case of News Corp, those who excel in change related initiatives could be rewarded and recognized going forward. Building on Change/Consolidation of Gains Here, quick wins should be taken as a beginning and not as an end. Hence in a way, victory must not be declared before the whole change process
Service Master has a family of brands that consist of companies that deliver services to home and businesses include pest control, maid service, landscaping and other services. The company has a high dependence on labor, and this labor must not only be professional in demeanor (quality service) but it must be well-trained and able to deliver the service to a high standard. There are two factors that could potentially increase
Service Quality of Singapore Airline The focus of this work in writing is the examination of the SERVQUAL model as it applies to a case study of Singapore Airlines in regards to service quality and the application of a conceptual model of service quality. This study will additionally explain the gap in service quality between firm and customer. The work of Prayag and Dookhony-Ramphul (2010) report that the SERVQUAL model "is still
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