Apple, Best Buy and Symyx Technologies

Apple, Best Buy and Symyx Technologies Team D Accounting ACC561 May 9, 2010 professor Myrtle Clarke Financial accounts and balance compend be wide use in todays business surround as a way to evaluate a trues pecuniary position. Although financial statements and ratio analysis are limited, these tools are designed to provide necessary guidelines and strategies for making communicate managerial and financial business decisions. Financial management focuses on where to get cash and how to use cash for the benefit of the formation (Horngren,739). Financial managers use financial statements to develop financial ratios, which highlights trusted areas to demonstrate the confederations position. Firms use financial analysis to make sound financial decisions. They in like manner use financial ratios to measure its level of financial risk and profitability ratios for their financial profit. This paper will demonstrate the financial position of the pastime three companies selected by Team D, Apple, Best Buy and Symyx Technologies. DuPont Ratio The DuPont ratio, which is also known as the Return on Equity (ROE), is used to analyze the profitability of a union using elements of the income statement with those of the balance sheet.

The DuPont ratio is also used to predict prospective performance, develop investment strategies and assess capital needs. The DuPont analysis tells us that the ROE is affected by three things, operating efficiency, which is measurable by profit margin, Asset use efficiency, which is measured by total asset turnover and Financial leverage, which is measured by the equity multiplier (Investopedia, 2010). Best Buys DuPont ratio is 6.246, Apple 2.751 and Symyx .0104. Although Best Buys ratio is congenator high, it is a positive sign for the company because of the increase in their net profit. Liquidity Ratios Liquidity ratios detail a companys ability to meet its short-term obligations. A companys liquidity can be measured using... If you neediness to get a full essay, order it on our website: Orderessay

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