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    Harbins Analysis

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    Ummu Zubair
    The document contains calculations of key financial metrics for a company: (1) Return on capital employed was 7.5%, calculated as net operating profit divided by capital employed. (2) Net assets turnover was 1.3 times, calculated as net sales divided by average total assets. (3) Net profit margin was 6.4%, calculated as net profit before tax divided by net sales. (4) Current ratio was 0.86, calculated as current assets divided by current liabilities.

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    Harbins Analysis

    Uploaded by

    Ummu Zubair
    33 views1 page
    The document contains calculations of key financial metrics for a company: (1) Return on capital employed was 7.5%, calculated as net operating profit divided by capital employed. (2) Net assets turnover was 1.3 times, calculated as net sales divided by average total assets. (3) Net profit margin was 6.4%, calculated as net profit before tax divided by net sales. (4) Current ratio was 0.86, calculated as current assets divided by current liabilities.

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    FS analysis

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    The document contains calculations of key financial metrics for a company: (1) Return on capital employed was 7.5%, calculated as net operating profit divided by capital employed. (2) Net assets turnover was 1.3 times, calculated as net sales divided by average total assets. (3) Net profit margin was 6.4%, calculated as net profit before tax divided by net sales. (4) Current ratio was 0.86, calculated as current assets divided by current liabilities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    33 views1 page

    Harbins Analysis

    Uploaded by

    Ummu Zubair
    The document contains calculations of key financial metrics for a company: (1) Return on capital employed was 7.5%, calculated as net operating profit divided by capital employed. (2) Net assets turnover was 1.3 times, calculated as net sales divided by average total assets. (3) Net profit margin was 6.4%, calculated as net profit before tax divided by net sales. (4) Current ratio was 0.86, calculated as current assets divided by current liabilities.

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    of 1

    i) Return on year-end capital employed =

    Net Operating
    Profit


    Total Assets - Current Liabilities


    = $16,000,000

    $258,000,000 -
    $44,000,000



    = $16,000,000


    $214,000,000



    = 7.5%


    ii) Net assets turnover

    = Net Sales


    Average Total Assets



    = $250,000,000


    ($258,000,000+$127,000,000)/2


    = 1.3 times


    iii) Net Profit(before tax) margin =
    Net profit(before
    tax)


    Net Sales



    = $16,000,000


    $250,000,000



    = 6.4 %



    iv)
    Current
    Ratio = Current Assets


    Current Liabilities



    = $38,000,000


    $44,000,000



    = 0.86

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