Browsing by Author "Soundharya P"

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ANALYSIS OF THE ABILITY OF FUTURE LIFESTYLE FASHIONS LTD. TO MEET ITS FINANCIAL OBLIGATIONS USING LEVERAGE RATIOS
(Our Heritage Journal, 2020-02) Judith Priya R; Srinidhi S; Pooja Giridharan; Soundharya P
A leverage ratio is any one of several measurements that look at how much capital comes in the form of debt (loans) or assesses the ability of a company to meet its financial obligations. The leverage ratio category is important because companies rely on a mixture of equity and debt to finance their operations, and knowing the amount of debt held by a company is useful in evaluating whether it can pay its debts off as they come due. Too much debt can be dangerous for a company and its investors. However, if a company’s operations can generate a higher rate of return than the interest rate on its loans, then the debt is helping to fuel growth in profit. Nonetheless, uncontrolled debt levels can lead to credit downgrades or worse. On the other hand, too few debts can also raise questions. A reluctance or inability to borrow may be a sign that operating margins are simply too tight. There are several different specific ratios that may be categorized as a leverage ratio, but the main factors considered are debt, equity, assets and interest expenses.
AN ANALYSIS ON THE RISK OF THE INVESTORS AND THEIR EARNINGS OF FUTURE LIFESTYLE FASHIONS LIMITED
(Our Heritage Journal, 2020-02) Judith Priya R; Srinidhi S; Pooja Giridharan; Soundharya P
Fundamental analysis uses the degree of financial leverage (DFL) to determine the sensitivity of a company’s earnings per share (EPS) when there is a change in its earnings before interest and taxes (EBIT). When a company has a high DFL, it generally has high interest payment. The high level of interest payments negatively affects EPS. A higher DFL ratio means that the company’s EPS is more volatile. Since leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital, the investors risk of interest payments are carefully analyzed so as to reduce the risk of the investors and also to increase the returns. The relationship between the earnings per share and degree of financial leverage is that of an ‘inverse relationship’, i. e when the level of earnings increases, there is a decline in the level of degree of financial leverage. When a company is referred to be “highly leveraged”, it means that the company’s funds consists of more debts than equity. The concept of leverage is used by both companies and investors. The investors use it to in crease the returns that can be provided on an investment. The ‘return’ that the investors expect is in the form of earnings per share they acquire due to capital appreciation. The earnings available to the equity shareholders after external payments is allocated among the shareholders as their return
TREND ANALYSIS ON FUTURE LIFESTYLE FASHIONS LTD. IN REGARD WITH REVENUE AND PROFIT
(Our Heritage Journal, 2020-02) Judith Priya R; Srinidhi S; Pooja Giridharan; Soundharya P
Trend analysis helps to analyse the change in trend of a particular segment. This helps the company to understand its performance whether its planned objectives are achieved. Trend analysis is a technique used in technical analysis that attempts to predict the future stock price movements based on recently observed trend data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future. This will help the company to focus on its strength and increase the trend in the sectors that it needs to concentrate.