Profitability and efficiency Ratios
Is our subtask basically a theoretical overview? I will be honest I haven't started work on it. Any insight would be welcome.
Hi Utang, this is largely a quantitative assignment so there are calculations to do. You will be calculating the profitability and efficiency ratio's and interpreting them. After calculating the ratios the general areas you will need to interpret are: What was attained by picknpay; What purpose does the ratio serve (ie what does it seek to measure); Determine whether it’s an improvement in comparison to previous years (2006 – 2008); Suggest possible reasons for this attainment; Apply the attainment to its industry (Retail business; These are general guidelines and you can consider more if necessary. I'll allocate you a partner soon. From conversation, I know this is not your strong point so the earlier you start...the better!!