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Words: | Submitted: Mon Jun 19 2006
... there were 15,923 holders of record of the Corporation's Common Stock. Financial calculations can be done to show interested parties how a specific company is doing. I will discuss four different categories of measures: profitability, liquidity, activity, and financial leverage. Profitability consists of ratios that measure the ability of the business to make a profit. An example of these ratios would be Return on Interest (ROI), Return on Equity (ROE), Price/Earnings Ratio, and Dividend Yield. I will only go over ROI and ROE. For Black & Decker, ROI is 2.7%. This describes the rate of return management was able to earn on the assets it had available to use during the year. ROE calculates out to 15%. ROE is important to stockholders and investors because it relates the company's earnings to the owner's investment. The next measure I would like to address is liquidity. Liquidity is the firm's ability ...
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