2.3.2 Case Fill Rate
The case fill rate is measured at the unit of measure (obviously frequently a case) in which the product is sold or the amount of cases shipped on the initial shipment versus the amount of cases ordered.
Normally in many cases, the quantity of order fill rate and case fill rate are different. The case fill rate seems more accurate than order fill rate, it often depends upon the product. It is unlikely that the customer would reject the order or be all that perturbed if they can only receive 9 of the 10 cases or the product they ordered. Therefore, in the case of a product sold, the case fill rate works well with measuring customer satisfaction. However, in a case of particular amount of product required, such as some technical
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It's usually used as a measure for earnings generated by the company during a period of time based on its level of sales, assets, capital employed, net worth and earnings per share. Profitability ratios measures earning capacity of the firm, and it is considered as an indicator for its growth, success and control.
1. Return on assets (ROA) ratio: Net profit after taxes/Total assets. This ratio is calculated as net profit after tax divided by the total assets. This ratio measure for the operating efficiency for the company based on the firm’s generated profits from its total assets.
2. Return on owner's equity (ROE) ratio: Net profit after taxes/Total shareholders equity. This ratio is calculated as net profit after tax divided by the total shareholders equity. This ratio measures the shareholders rate of return on their investment in the company. Activity ratios are another group of ratios; it's usually used to measure the ability to optimize the use of the available resources. These ratios are other measures of operational efficiency and performance. Among this group of ratios is the turnover to capital employed or return on investment (ROI)
Return on equity (ROE) measures profitability from the stockholders perspective. The ROE is a calculation of the return earned on the common stockholders' investment in the firm. Generally, the higher this return, the better off the stockholders are. Harley Davidson's return on equity was 24.92% for 2001, 24.74% for 2000. They have sustained consistent, positive, returns for their shareholders for the past two years.
Description: Return on Equity (ROE) indicates what each owner’s dollar is producing in terms of net income that is the rate of return on stockholder dollars. ROE is a common metric for assessing the value of a firm and most investors look to ROE first when deciding where to allocate their capital. As such, it is also an important measure for a CEO to monitor.
Profitability ratios express ability of the company to produce profit. This shows how well a company is performing in a given period of time. To compare the profitability for the companies, the investors use profitability ratios that are return on equity, profit margin, asset turnover, gross profit, earning per share. Return on asset indicates overall profitability of assets. It is the relationship between net income and average total assets. GM has 0.034 and Ford has 0.036. This indicates Ford is more profitable. Profit margin is how much of every dollar of sales the company keeps. Computing profit margin, net income divided by net sales. This indicates higher profit margin is more profitable and it has better control. Thus, GM’s profit margin is 3.4 percentages and Ford’s is 4.9 percentages. This indicates Ford has better control profitably compared to GM. Next ratio is gross profit rate. It is how much of every dollar is left over after paying costs of goods sold. Assets turnover represents how efficiency a company uses its assets to sales. This ratio is relationship between net sales and average total assets. GM’s is 0.98 and Ford’s is 0.75. This result represents GM is using its assets more efficiently. Gross profit margin is dividing gross profit, which is equal to net sales less cost of gods sold, by net sales. This ratio indicates ability to maintain selling price above its cost of goods sold. GM’s gross profit rate is 11.6 percentages. Ford’s is 5.7 percentages. GM is higher ratio, and it indicates strong net income. Also, it indicates the company has to spend lower operating expenses and the company is able to spend left money for covering fixed costs. Earnings per share indicate the company’s net earnings to each share common stock. This ratio shows margin between selling price and cost of goods sold. From these companies’ income statement, GM is $2.71 and Ford is $1.82. Because GM’s value is higher relative to Ford’s,
ROA (return on assets) [(76684) + 70311] / 2262980 = (0.003) [38494 + 22608] /
The price to earnings ratio (P/E ratio), calculated by dividing the share price by the company’s annual net income, is the most commonly used measure for evaluating a stock.
The analysis of these ratios shows how Ford stands as a company for the past five years. Return on equity (ROE) reveals how much profit a company earned in comparison to the total amount of shareholder equity on the balance sheet. For long-term investing with great rewards, companies that have high return on equity ratios can provide the biggest payoffs. This ratio also tells investors how effectively their capital is being reinvested, so it is a good gauge of management's money handling skills. Ford is showing a considerable turn around in this area this past year, which could easily be due to changes in management. They are also reasonably following the industry in this area.
ROA = Net Profit ÷ Average Total Assets c. Gross Profit Margin - measures how much is left from every dollar revenue after paying cost of goods sold (Elias, 2010, pp. 179 -280). This is a ration that Premier Investments should monotone constantly to make sure that gross profit is covering selling and administrative expenses.
Lastly, the return on equity (ROE) ratio is a profitability measurement that determines the amount of profit Under Armour has yielded from the shareholders’ investments. Under Armour’s ROE increased from 11.55% in 2008 to 15.76% in 2012, as calculated in Appendix F. Under Armour experienced an exceptional and promising ROE due to still being in the growth stage. However, the management of Under Armour should try to maintain the high ROE to stay compelling to investors in the sportswear
Return on Assets (ROA), similar to ROIC, ROA, demonstrated as a percent, determines the firm’s capacity to formulate money from its assets. To calculate the ROA, extract the financial statement net income divided by the total
Accounting Rate of Return (ARR) compares the profits you expect to earn from an investment to the amount you need to invest. The ARR is often calculated as the average annual profit you expect over the lifespan of an investment project, compared with the average amount of capital invested.
Activity Ratios are used to determine how efficiently a company uses its assets. They help provide an idea of the overall operational performance of a company. The activity ratios are “turnover” ratios that relate an income statement line item to a balance sheet line item.
The ROA composes two elements, one is profit margin and the other one is assets
Profitability is calculated by Return on asset and dividend payout is calculated by dividend payout ratio.
Financial statements can be broadly analyzed through ratio analysis. A ratio of selected values on an enterprises financial statement is financial ratio. To evaluate the overall financial condition of a corporation or other organization there are standard ratios are used. The market price of the shares is used in regular financial ratios if division in a company traded in a financial market. The values are taken from the balance sheet, cash flow statement, income statement and retain earning statement for the purpose of analyzing the financial ratios.
All the more particularly, this decides the ability to absorb misfortunes, fund its extension, pay profits to its shareholders, and develop an adequate level of capital. Being front line of defense against the destruction of a capital base from misfortunes, the requirement for high profit and earnings can scarcely be overemphasized. Although diversifying pointers are utilized to fill the need, the best and most broadly utilize indicator is a Return on Assets (ROA). ROA is employed by establishments and banks to outfit them with an important instrument for evaluating their progress, including utilization of assets and financial quality (Haque, 2014). Then again, for inside and out examination, an alternate pointer Net Interest Margins (NIM) are likewise utilized. Chronically unfruitful money related establishment’s hazard bankruptcy. Contrasted and most different pointers, inclines in gains can be hard to decipher for cars, abnormally high benefit can reflect excessive danger