Financial Analysis

OVERVIEW business 1-1 ------------------------------------------------- Comparative Report ------------------------------------------------- Arbors profit margins are higher than Kampas. However, Kampa has significantly higher entirety asset overturn ratios. As a result, Kampa gene pass judgment a substantially higher return on correspond assets. ------------------------------------------------- ------------------------------------------------- The trends of both companies include evidence of growth in sales, total asset turnover, and return on total assets. However, Arbors rates of improvement are better than Kampas. These differences may result from the point that Arbor is only 3 geezerhood old maculation Kampa is an older, more established company. Arbors operations are considerably smaller than Kampas, but that will not persist many a(prenominal) more years if both companies continue to grow at their current rates. ------------------------------------------------- ------------------------------------------------- To round extent, Kampas higher total asset turnover ratios may result from the fact that its assets may have been purchased years earlier.

If the turnover calculations had been based on current values, the differences might be less striking. The relative ages of the assets also may explain some of the difference in profit margins. Assuming Arbors assets are newer, they may require smaller maintenance expenses. ------------------------------------------------- ------------------------------------------------- Finally, Kampa successfully utilise financial leverage in 2000. Its return Is this the right sample for you? Watch the video below to read 2 more pages now. or If you want to get a full essay, nightclub it on our website: Ordercustompaper.com

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