Financial Accounting Ratios Assignment Help

Posted on December 21, 2016

Looking for Financial Accounting Ratios Assignment Help or Financial Accounting Ratios homework Help, You are at correct place.

What is Financial Accounting Ratios Assignment Help?

 

Financial accounting ratios assignment help or financial accounting ratios analysis homework help refers to the service where we help students in the preparation of their assignment using various accounting ratios. One can understand our approach by seeing the analysis of Sony and Microsoft using various financial accounting ratios so as to analyze their viability for investment ratios. This will help student to understand our financial accounting ratios assignment help or accounting ratios analysis homework help service.

Approach using Examples for Financial Accounting Ratios Homework Help

Calculation and Analysis for Financial Accounting Ratios Assignment Help

 

Debt Equity Ratio for Financial Accounting Ratios Homework Help

 

The capital structure will be analysed using this ratio for both the companies. These ratios are important as it speaks about the financial leverage components of the company. It basically stands for the ratio between debts as compare to equity components. The ratio for both the companies are given below:-

DebtEquityD/E Ratio
Sony   8,901,000.00     6,279,000.00             1.42
MSFT 20,645,000.00 683,666,000.00             0.03

 

From the ratio analysis we found that the D/E ratio is much lower for MSFT compare to Sony and also Sony ratio is much higher compare to industrial average of .62 showing the financial risk company is facing as higher debt will increase the interest expense for the Sony.

Profit Margin Ratio for Financial Accounting Ratios Assignment Help

 

It shows the earning after interest and taxes. It can be getting from EBIT profit after deducting interest and taxes. The ratios for both the companies are given below:-

Net profitSalesNet Profit Margin
Sony  (1,246,000.00)   75,421,000.00-2%
MSFT 22,074,000.00 868,333,000.003%

 

 

As shown in the table the net profit is in red for Sony compare to Microsoft showing the need for Sony to improve else it will put company in danger. The ratio is much lower for both companies compare to industrial average of 5.5%.

ROE for Financial Accounting Ratios Homework Help

 

It stands for return on equity which means the amount of return get by the common shareholders. The ratio for both the companies are given below:-

Net profitEquityROE
Sony      (1,246,000.00)        6,279,000.00-20%
MSFT     22,074,000.00    683,666,000.003%

 

As shown in the table the ROE is in red for Sony compare to Microsoft showing the need for Sony to improve else it will put company in danger. The ratio is much lower for both companies compare to industrial average of 6.5%.

 

P/E Ratio for Financial Accounting Ratios Homework Help

 

It can be calculated as market value of the share with respect to the earning per share of the stock. The ratios for both the companies are given below:-

 Net profit Equity Price P/E
 Sony      (1,246,000.00)        6,279,000.00            21.93           (110.51)
 MSFT     22,074,000.00    683,666,000.00            47.47         1,470.22

 

 

As shown in the table the P/E is in red for Sony compare to Microsoft showing the need for Sony to improve else it will put company in danger. The ratio is much higher for Microsoft compare to industrial average of 21.5 showing the overpricing of stock.

 

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