Based on the Common Size Statement Analysis Which of the Following

question 2

Multiple Choice

Based on the common size statement analysis which of the following statement regarding employee cost is correct?

• A) The employee cost is expected to contribute 8% to decrease in PAT in FY15
• B) The employee cost is expected to contribute 7% to decrease in PAT in FY15
• C) The employee cost is expected to contribute 6% to decrease in PAT in FY15
• D) The employee cost is expected to contribute 5% to decrease in PAT in FY15

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Definitions:

Dividends Per Share

A measure of how much dividend income a company pays out to its shareholders per share of its stock.

Net Profit Margin Ratio

A financial metric that shows the percentage of net income derived from total revenue, indicating how efficiently a company is managing its expenses.

Total Asset Turnover Ratio

A financial metric indicating how effectively a company uses its assets to generate sales revenue, calculated by dividing sales by average total assets.

Fixed Assets

Long-term tangible property, plant, and equipment that a company owns and uses in its operations to generate income.