base on Cheung Kong's 2005 annual report, what are the
1. Net Profit ratio
2..Debt to equity ratio
can u comment on the ratios?
if u are a banker, will u grant a large loan to Cheung Kong? or Hutchison Wampoa? suppose the loan will not affect the gearing ratios of the company, which company would u prefer to lend to?
Reference:
2005 長江年報-
http://www.ckh.com.hk/eng/investor/annual/2005eng.pdf
2005 黃埔年報-
http://www.hutchison-whampoa.com/eng/investor/annual/annual.htm#ar05
長江 & 黃埔 2005 comparison
2007-04-20 5:31 am
回答 (2)
2007-04-26 5:16 pm
✔ 最佳答案
Cheong Kong Net profit ratio (profit attributable to shareholders / turnover)
= 13,995 / 14,358
= 0.9747
Debt to equity ratio (non-current bank and other loans / total equity)
= 18,683 / 189,923
= 0.0984
Hutchison
Net profit ratio (profit attributable to shareholders / revenue)
= 14,343 / 182,584
= 0.0786
Debt to equity ratio [(long term borrowing+personal obligation+other non-current liabilities) / total equity]
= 244,679 / 253,629
= 0.9647
Net profit ratio cannot be compared as the business of these two companies are different.
The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is important to realize that if the ratio is greater than 1, the majority of assets are financed through debt. If it is smaller than 1, assets are primarily financed through equity. Thus, it means that Hutchison has much high risk than Cheong Kong by considering this ratio only; the banker will prefer to grant a large loan to Cheung Kong.
2007-04-26 5:17 pm
Is it the homework that should be done by yourself?
收錄日期: 2021-04-18 21:53:11
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