Profitability Ratios
Essay by Yeolong Oh • November 7, 2017 • Coursework • 691 Words (3 Pages) • 1,153 Views
Profitability Ratios
2013-12 | 2014-12 | 2015-12 | 2016-12 | |
Gross Margin | 42.46 | 38.36 | 40.65 | 43.29 |
Operating Margin | 8.44 | 2.27 | 4.09 | 7.68 |
Return on Assets % | 4.2 | 1.51 | 2.17 | 4.58 |
Return on Equity % | 10.46 | 3.76 | 5.73 | 11.94 |
Return on Invested Capital % | 9.33 | 4.43 | 5.85 | 9.96 |
Interest Coverage | 6.14 | 1.64 | 2.78 | 4.69 |
Net Profit Margin | 0.048 | 0.00074 | 0.016 | 0.043 |
Liquidity Ratios
2013-12 | 2014-12 | 2015-12 | 2016-12 | |
Current Ratio | 1.35 | 1.34 | 1.26 | 1.34 |
Working Capital EUR Mil | 2,998 | 3,179 | 2,625 | 3,602 |
Leverage Ratios
2013-12 | 2014-12 | 2015-12 | 2016-12 | |
Long-term debt to capital | 0.23 | 0.25 | 0.26 | 0.24 |
Debt-to-equity ratio | 0.3 | 0.34 | 0.35 | 0.32 |
Coverage ratio | 6.14 | 1.64 | 2.78 | 4.69 |
Long-term debt to equity | 0.3 | 0.34 | 0.35 | 0.32 |
Activity Ratios
2013-12 | 2014-12 | 2015-12 | 2016-12 | |
Days Inventory | 90.11 | 90.72 | 85.96 | 89.98 |
Inventory Turnover | 4.05 | 4.02 | 4.25 | 4.06 |
Average Collection Period | 0.29 | 0.29 | 0.25 | 0.25 |
Other Important Measures of Financial Performance
2013-12 | 2014-12 | 2015-12 | 2016-12 | |
Pay-out Ratio % * | 104.6 | 90.6 | 128.1 | 199.8 |
Free Cash Flow EUR Mil | 502 | 752 | 210 | 1,035 |
Dividends EUR | 0.75 | 0.68 | 0.81 | 0.81 |
Earnings Per Share EUR | 1.27 | 0.45 | 0.7 | 1.56 |
Profitability Ratios
From the ratio analysis it show that the gross profit margin of year 2016 is 43.29 is higher than year 2015 which is 40.65 which means during year 2016, Philips has more revenue to cover the operating expenses and gain profit.
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