A FINANCIAL MANAGEMENT REPORT FOR EMAP PLC( A MEDIA COMPANY) Essay

A pecuniary MANAGEMENT REPORT FOR EMAP PLC( A MEDIA COMPANY) - Essay ExampleFinancial ratio analysis is a actually essential tool in assessing the financial health of a business entity. Specifically, it enables a financial analyst to spot tr stamp outs in a business and to compare it with the performance of similar business enterprises within the same industry. Financial ratios are grouped into three categories, each showing a different aspect of a companys financial surgerys. These are moolahability ratios, financial leverage ratios and liquidity/solvency ratios.Profitability ratios bankers bill the ability of the company to generate income from its investments less the costs incurred. The pull in profit mete ratio tells us the profit a business makes on its cost of sales, or cost of goods sold. It tells us how much gross profit per peso of turnover our business is earning. Gross profit is the profit we earn before we reside off any administration costs, selling costs and so on. The computed operate profit margin, which is the ratio of operating income to sales measures as a percentage of sales, the excess revenue from sales over cost of convening operation excluding financing. Net profit margin, on the other hand, is the ratio of net income to sales. Unlike the operating profit margin, it takes into account the secondary or incidental gains aside from the companys main business operation and all the costs incurred including financing. Return on assets and return on equity are variants of return on investment, which are more significant ratios than the margins. While return on assets measures the rate of return on the arrive investments of the company, the return on equity assesses the rate of return on the investments of common stockholders in the company (Analyzing connection Reports 2005). Logically, higher profitability ratios indicate a healthier financial condition.It can be seen that at the end of March 2005 the company does not perform we ll in terms of profitability. Gross profit margin is