Risks Essay Examples

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risks to maintain a healthy asset base. The asset management of Strong Tie Ltd can be analyzed using its asset turnover ratio which shows how the company is using its assets to generate income. Asset turnover= Sales / Total assets. In 2006 the turnover over was 1.41, there was no change in the value in 2007 and 1.31 in 2008. Despite the decrease in 2008, the trend is steady, and this shows Strong Tie Ltd has good asset management. Profitability The profitability of the company can be assessed using the profit margin which indicates the capability of earning profits. The profit margin in 2006 was 0.09, 0.05 in 2007 and 0.0004 in 2008; this trend shows a major decline in 2008 because of the decrease...

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