盈利能力的财务指标用来评估业务能力产生收益相比,发生在一个特定的营业费用和其他费用,一段时间。如果盈利能力比率更高的竞争对手相比,还是与以前相同的比率,这意味着这家公司做得很好(威廉姆斯,Jan R。,苏珊·f·毛利族,Mark s Bettner正;约瑟诉Carcello 2008)。共同的盈利能力比率是:
Billiabong International is primarily clothing company and trading under Australian Stock Exchange. In 2008 the company collapsed and from that time it is under financial performance. In year 2013 the company’s price reduced by 42% and its growth declined by 83.12% for last 3 years. The company had loss from its core businesses in year 2013.
Billiabong International Ltd is an international company that primarily focuses on clothing products, accessories, and skateboard products. This company has different brands under Billbong. In 2008 this company got collapse. This company has faced lots of problems in terms of revenue loss from year 2008 in its core business. In 2013 the company’s share prices drop by 42% which was among the worst performance in S &P and ASX 200. This report focuses on the analysis of financial ratios for year 2012 and 2013. This is being done for understanding the profitability, efficiency, liquidity, leverage of the company. This report also focuses on the investment performance and assessment of the company in terms of its shareholders for year 2012 and 2013.
Profitability is the financial metrics that is used to assess the business ability to generate earnings in comparison to the business expenses and other costs which incurs in a specific period of time. If the profitability ratios are higher in comparison to its competitors or has same ratios as previous, that means the company is doing well (Williams, Jan R.; Susan F. Haka; Mark S. Bettner; and Joseph V. Carcello 2008). The common profitability ratios are:
– Gross Profit Margin (GPM)