Professional Documents
Culture Documents
Shareholders Point of View: Return On Equity Return On Capital
Shareholders Point of View: Return On Equity Return On Capital
. Managers/ Employees have access to more information and will want to know the stability of the company and profitability. Creditors - are interested in the liquidity, as they just want to be paid on time. Banks - are interested in the performance and liquidity of the organizations for lending purposes.
Shareholders point of view A prime concern of shareholders is their return on investment. The returns from investing in shares of a company come in two main forms: The payment of dividends out of profits. The increase in the value of the shares (share price) compared with the price that the shareholder originally paid for the shares.
Dividend yield Dividend yield is a better shareholder ratio to use to get a sense for the rate of return on investment.
EPS
EPS 3.753
a) Current ratio Current ratio=current assets / current liabilities (In Millions) Current assets Mar 11 Mar 10 Mar 09 Mar 08 Mar07 Mar 06 25,497 Current liabilities
24,283
Current ratio
b) Quick Ratio Quick Ratio = Quick Assets / Current Liabilities Where ,Quick Assets = Current Assets Inventories- Doubtful Debtors Prepaid Expenses + Advance Tax
Quick assets Mar 11 Mar 10 Mar 09 Mar 08 Mar 07 Mar 06 25,497- 3092
Current liabilities
Quick ratio
Mar 07 Mar 06