Profitability Profitability is the relationship between profit and sales and helps managers to determine how well each dollar of sales generates profits The level of profitability depends on: 1. The volume of sales 2. The percentage mark-tup applied 3. The level of expenses incurred There are three ratios to measure profitability: Gross Profit Ration (GPR) Is derived from the income statement It shows how well the company is maintaining and adequate margin between sales and purchases
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Management. Daffodil International University. 1 Introduction There is a trade-off between liquidity and profitability; gaining more of one ordinarily means giving up some of the other. Liquidity means having enough money in the form of cash‚ or near-cash assets‚ to meet your financial obligations. Alternatively‚ the ease with which assets can be converted into cash. Profitability is a measure of the amount by which a company’s revenues exceed its relevant expenses. It is obvious that excessively
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The major profitability ratios are: 1.1.1.1 RETURN ON CAPITAL: Describes the earning capacity of the enterprise and it is measured by the following ratio: Profit before interest and taxation Average operating Assets The Return On Capital ratio measures how well the average operating assets (assets such as debtors‚ cash‚ fixed assets‚ stock) are generating the company s income‚ and is indicative of the management techniques applied by the company to utilise its assets
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Airline Profitability in NIGERA In a 2008 interview with VIA Magazine‚ Richard Branson‚ founder of Virgin Airways‚ said‚ “I’ve always said the easiest way to become a millionaire is to start out a billionaire then go into the airline business.” The airline business has been somewhat of a mixed bag; that is until 2010 when airlines were at their most profitable. According to the Wall Street Journal‚ since 1978 airlines have experienced lagging profits‚ but in 2010 they posted half year profits
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1‚26 ROE 36‚91% 34‚32% ROD 0‚32% 1‚06% In this report we are comparing two of the biggest clothing companies H&M and INDITEX by using profitability ratios for making a financial statement analysis. We will state opinions in regard to the previously analyzed figures and comment on them. The overall profitability (ROI) is 23‚01% in 2011 and 24‚18% in 2012. So the ROI is showing an increase in the period analysed because of the increasing PMR (from 18‚29% to 19‚55%)and
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NBER WORKING PAPER SERIES PROFITABILITY OF MOMENTUM STRATEGIES: AN EVALUATION OF ALTERNATIVE EXPLANATIONS Narasimhan Jegadeesh Sheridan Titman Working Paper 7159 http://www.nber.org/papers/w7 159 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge‚ MA 02138 June 1999 This paper has benefited from the excellent research assistance of Fei Zou and helpful comments from the participants of finance workshops at Indiana University and the University of Texas. All opinions expressed
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Week 9 case study ING Direct Question 1: what level of the product hierarchy has ING Direct leveraged and how does this create value for both customers and the shareholders of ING Direct? ING Direct has leveraged the product from basic product to augmented product. Basic product from a bank industry is simply providing bank service through branch or call centre‚ which has meet core need of their target customer. The introduction of virtual Internet banking‚ which has exceeded the customer expect
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Direct Marketing consists of connecting directly with carefully targeted consumers‚ often on a one-to-one‚ interactive basis. Using detailed databases‚ companies tailor their marketing offers and communications to the needs of narrowly defined segments or individual buyers. Beyond brand and relationship building‚ direct marketers usually seek a direct‚ immediate and measurable consumer response. The New Direct Marketing Model Early direct marketers-- catalog companies‚ direct mailers‚ and telemarketers--
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Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan‚ one-on-one demonstrations‚ and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation‚ demonstration‚ and sale of products and services to consumers‚ usually in their homes or at their jobs." Advantages/Benefits
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------------------------------------------------- Direct marketing communication Direct Marketing What is Direct Marketing? Direct marketing is a channel free approach to distribution and/or marketing communications. So a company may have a strategy of dealing with its customers ’directly‚’ for example banks (such as CityBank) or computer manufacturers (such as Dell). There are no channel intermediaries i.e. distributors‚ retailers or wholesalers. Therefore - ’direct’ in the sense that the deal is done directly
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