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8/13/2019 Google+Gap Final
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Profitability 2008 2009
Gross Margin % 60.4 62.6
Operating Margin % 30.4 35.1
Working Capital USD Mil 17,876 26,419Return on Assets % 14.8 18.05
Return on Equity % 16.6 20.3
EPS 13.31 20.41
Liquidity/Financial Health 2008 2009
Current Ratio 8.77 10.62
Quick Ratio 8.03 10.08
Financial Leverage 1.13 1.12
Debt/Equity
Efficiency 2008 2009
Payables Period 9.74 8.13
Cash Conversion Cycle 0.00 0.00
Receivables Turnover 9.07 8.13
Inventory Turnover 0.00 0.00
Fixed Assets Turnover 4.7 4.69
Asset Turnover 0.76 0.65
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GAP
Profitability 2008 2009 2010
Gross Margin % 36.1 37.5 40.3
Operating Margin % 8.3 10.7 12.8
Earnings Per Share USD 1.05 1.34 1.58Working Capital USD Mil 1,653 1,847 2,533
Return on Assets % 10.17 12.56 14.17
Return on Equity % 17.63 22.33 23.76
Liquidity/Financial Health 2008 2009 2010
Current Ratio 1.68 1.86 2.19
Quick Ratio 0.78 0.79 1.21
Financial Leverage 1.83 1.72 1.63
Debt/Equity 0.01
Efficiency 2008 2009 2010
Payables Period 38.33 39.82 43.12
Cash Conversion Cycle 0.00 0.00 0.00
Receivables Turnover 0.00 0.00 0.00
Inventory Turnover 5.98 5.89 5.68
Fixed Assets Turnover 4.88 4.69 5.11
Asset Turnover 1.92 1.89 1.83
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Financial Health Measurement
Financial ratios can shed light on the financial health of a business. Depending on the rati
business aspect being examined, a business' debt, inventory and sales health can be gage
liquidity ratios show how well a business meets short-term financial obligations. The wor
ratio is an example of a liquidity ratio. A good working capital ratio is 2-1, meaning a busi
should be twice a business' liabilities.
Inventory
Financial ratios, such as inventory turnover and days inventory, assist a business in mana
flow. Inventory turnover measures how quickly a business sells its inventory. It is also a a
to evaluate obsolescence, and track both over- and under-performing products. Days inve
measures how long it takes a business to run through its inventory. This ratio can also indi
that are selling well and those that are not.
Related Reading:How to Derive Financial Ratios
Profitability
Financial ratios can help a business determine how profitable the business is. One exampl
profit margin. This measures how well a company generates profit before general operati
inventory expenses are factored in. Net profit margin indicates if a business makes enoug
meet its operating costs and still show a profit. Return on Investment is a measurement t
to current and potential investors. This ratio shows how well money invested into the bus
utilized.
8/13/2019 Google+Gap Final
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