feb 16th - Tuesday Times interest earned EBIT Another name...

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Tuesday, February 16, 2016 Times interest earned The formula for this is EBIT interest . Another name for E.B.I.T is operating profit. So another formula is operating profit interest . Operating profit/EBIT can be found in the income statement. Anything dealing with profit and loss, will be found on the income statement and balance sheet deals with anything related to assets . For 2014— 130 40 = 3.25 and for 2013— 133 35 = 3.8 if the industry average is 5 in 2014 and 5.5 in 2013. Therefore, the comparative trend is bad in both cases and trend analysis is bad too. Profitability ratios— this takes into account the liquidity, asset management & debt management to see how profitable the company is. Profit margin on sales = net income ¿ commonstock ¿ sales for 2014, 54 1500 = ¿ 0.036 or 3.6% and for 2013, 59 1435 = ¿ 0.04 or 4% i.e. if you’re making sales of 1500 (2014), your profit is 3.6%. if the industry average in 2014 is 6% and for 2013, 6.5%. The comparative analysis is bad in both years and trend analysis is bad in both cases too.
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