It's obvious financial statement have a lot of numbers in them and at first glance it can seem unwieldy to read and understand. One way to interpret a financial report is to compute ratios, which means, divide a particular number in the financial report by another. Financial statement ratios are also useful because they enable the reader to compare a business's current performance with its past performance or with another business's performance, regardless of whether sales revenue or net income was bigger or smaller for the other years or the other business. In order words, using ratios can cancel out difference in company sizes.
There aren't many ratios in financial reports. Publicly owned businesses are required to report just one ratio (earnings per share, or EPS) and privately-owned businesses generally don't report any ratios. Generally accepted accounting principles (GAAP) don't require that any ratios be reported, except EPS for publicly owned companies.
Ratios don't provide definitive answers, however. They're useful indicators, but aren't the only factor in gauging the profitability and effectiveness of a company.
One ratio that's a useful indicator of a company's profitability is the gross margin ratio. This is the gross margin divided by the sales revenue. Businesses don't discose margin information in their external financial reports. This information is considered to be proprietary in nature and is kept confidential to shield it from competitors.
The profit ratio is very important in analyzing the bottom-line of a company. It indicates how much net income was earned on each $100 of sales revenue. A profit ratio of 5 to 10 percent is common in most industries, although some highly price-competitive industries, such as retailers or grocery stores will show profit ratios of only 1 to 2 percent.
Summary:
Effective study habits are essential for achieving and maintaining a high GPA. More importantly, effective study habits help you to store information in long-term memory, allowing you to use the learned information in a novel setting. Applying the following rules for studying will aid you in earning excellent marks in school.
Do: 1. Keep the area around your desk neat and tidy. If possible, the area should also be quiet. If you are having trouble finding a quiet place to s...
Keywords:
Study skills, college,student
Article Body:
Effective study habits are essential for achieving and maintaining a high GPA. More importantly, effective study habits help you to store information in long-term memory, allowing you to use the learned information in a novel setting. Applying the following rules for studying will aid you in earning excellent marks in school.
Do: 1. Keep the area around your desk neat and tidy. If possible, the area should also be quiet. If you are having trouble finding a quiet place to study, try the local library or park. The library is a perfect place to have peace and quiet. The park may not be as quiet, but the fresh air can make studying less nerve-racking. If these options are unavailable, then try listening to some music while studying.
2. Have a scheduled study time for each school day. Remember that one classroom hour should be reinforced by two hours of studying at home.
3. Sit down for 45 minute intervals, followed by 15 minute breaks. Having an easily attainable goal, like sitting for set duration of time, is effective for increasing motivation.
4. Reward yourself if and only if you have met your goal for that study session. For example, if you plan to study one chapter and succeed, then you may reward yourself by doing something pleasurable. Examples of positive reinforcement are: food, exercise, videogames, etc.
5. Make correspondences between your class notes and your textbook. This will help you to fill in any background information not covered in class.
6. Prepare questions about the chapter that will be discussed in the following class. This will help you identify areas that you don't understand.
7. Put any new words or concepts to use. The more you use the learned information, the more likely you will be to remember it. This is especially true for language classes.
8. Finally, review what you have studied just before you go to bed. You will find that you will remember the words very strongly the next morning.
Don't: 1. Procrastinate. Cramming is not beneficial for producing long term memory.
2. Highlight. Highlighting is a form of procrastination, because you are saving note taking for later. This means you must use the book twice instead of once. Instead, make careful notes to compliment your classroom notes, along with page numbers so that you can refer back to the book if necessary.
3. Study on the computer. You are bound to be tempted to check your email or surf the net.
4. Leave your cell phone on during study time. No matter who is calling or texting you, usually it can wait 45 minutes. Having your cell phone on during study time can be a major distraction and is not conducive to learning.
5. Study just after you have eaten. Studies have shown that thinking is slower after having a meal.
6. Space out. When you feel your mind begin to wander, remind yourself to concentrate. If you are reading, using your finger is a good way to keep your mind on track. The movement of your finger on the page forces you to pay attention to what you are doing.
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