Executive Summary

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Student’s Name Professor’s name BMGT1101 Date Executive Summary A summary of ratio analysis Return on sales is used in accounting to evaluate the company’s operation efficiency and profitability. The obtained value provides an insight into the extent to which a dollar sale produces a profit. An increasing ROS signals more efficient growth within a company while the declining ROS indicates looming financial crises. According to Needles, Blverd, Powers, and Susan (32) the ratio measures the performance of a company. Creditors, investors, and other debt holder rely on the efficiency ratio since it clearly communicates the proportion of the Return on sales, also known as known as the operating profit margin is a ratio that used in operating cash that a company makes out of its revenue. The ratio also provides insight to potential dividends, and the company’s ability to service is debts. From Ratio Analysis of Potential Amusement Park Investments, we can deduce that Six Flag with the highest ROS (28.62%) is currently the most efficiency performing company and hence more profitable amongst the three categories. Cedar Fair follows as the second profitable with ROA OF 24.00% and finally Sea World Entertainment (13.55%). Current ratio Current ratio also known as working cash flow ratio is liquidity ratio that measures the company’s ability to pay both the short-term and the long-term obligations. The values assess the degree to which the company’s resources (current assets) can meet its short-term obligations (current liabilities). The rule of thumb state that “the more the company’s current ratio, the more liquid the company is and hence ability to service it's

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