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There was a drop in term of Times Interest Earned during 2007-2008. Boral only can cover
its interest charges at 3.72 times in 2008. It indicates a difficulty in the company’s
business where EBITdecreased and Boral had to face a higher interest.
There was a decrease in ROA during 2007-2008. ROA’s components also indicate a
decrease in profit margin (from 0.083 to 0.068).
There was also a decrease in ROE. ROE’s components show that the reason for this
decrease is drops in profit margin and “debt burden”.
3. Internal Growth Rate = Retained Earnings Net Assets = Retained Earnings net income
x net income equity x equity net assets