The ratios of a fraternity are very insightful to the unwarranted on target financial situation of the caller-out. Even if thither is not development posted, or readily available, it is easy for an analyst to see the inner-workings of a company. Ratios can tump over you a brain of where to place a company on a relative basis. Also, ratios such as beta and Price to earnings, give you an mentation of how the strain correlates with the market. Â Â Â Â Â Â Â Â Analysts subprogram ratios such as generation wager realize, and long experimental condition debt to capital, to give you a image of a stick by rating, level(p) if one is not available. Dreyers Grand Ice jactitate has had a long verge debt to capital ratio at close 37.5 percent for the decision two years. Also the times interest earned was 4.3 for 2000, and 2.6 for 1999. These ratios give Dreyers an approximate bond rating of Baa. Beta is an primary(prenominal) ratio to see how the line of des cent fluctuates with the market. When finding a beta you may come crossways a adult range of values. It is best to chose one that does not over or underestimate the correlation between the stock and the market. Over the medieval few years we found that the beta for Dreyers has been about .75. This beta is about average for the fare industry.
This comprehensive suppose of the ratios and financial data tells us that Dreyers is not an heavy(p) financial company, but does have some bright spots. The advantageously points are that times interest earned has gone up, and that thither is room for profit growth in the future. The Weight ed fair(a) Cost of Capital is the amount th! at the company must turn around to actually add value into the company. It is the probability cost that the company takes on... If you want to get a beneficial essay, order it on our website:
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