It is obvious, Financials have lots of numbers and at first glance, it may seem unwieldy to read and understand. One way to interpret a financial report is to calculate the ratios, which means, divided into a number in the financial report by another. Financial reports are also useful because they allow the reader to compare current performance a company with its past performance or with another company, regardless of whether net if income or turnover performance was larger or smaller for other years and another company. In the words of order to reports can cancel the difference in size of the company.
There are not many reports in financial reports.Public companies are required to report that ratio (earnings per action or EPS) and not generally private companies the rapports.généralement report accepted accounting principles (GAAP) do not need that reports be reported except EPS for public companies.
Reports do not provide definitive answers, however. They are useful indicators, but are not the only factor in assessing the cost-effectiveness and efficiency of a company.
A report is a useful indicator of the profitability of the company is the ratio of margin brute.Il is gross margin, divided by sales.Companies do discose margin information in their external financial reporting.This information is considered as exclusive in nature and is kept confidential for competitors.
Benefit ratio is very important in the analysis section of a entreprise.Il indicates what net income earned on every $ 100 of one report 5-10% profit turnover is common in most industries, although some very competitive prices, such as retail and grocery industries will show only 1 to 2% profit ratios.
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