Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Based on the
1.Current Ratio 2. Acid Test or Quick Ratio 3. Cash Ratio 4. Debt Ratio 5. Debt to Equity Ratio 6. Asset Turnover Ratio 7. Receivable Turnover Ratio and 8. Day Sales to Inventory Ratio.
Based on the calculations presented above interpret the overall performance of BMW AG Group’s and the line items it must stay focused upon. Discuss its overall financial status having calculated the ratios across the years, considering the impact of Covid-19 while support decision-making related to its future growth and profitability
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