help on calculating ratio

thambi · 1 help on calculating ratio Thu Jul 07, 2011 7:04 pm

thambi

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okay just a quick question in a companys quaterly/annual statemnt which figure do i use when calculating a ratio
the group or the company for example i was lookin at free lanka and its assets for ordinary shares of the group is above 4 and
for the company is below 2 so which one do take if i want to know what the asset value per share is for free lanka ?

thanks in advance Smile

sameeramlc · 2 Re: help on calculating ratio Thu Jul 07, 2011 9:49 pm

sameeramlc

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This will help to you friend

http://forum.srilankaequity.com/t4461-calculation-of-financial-ratios

Hiru · 3 Re: help on calculating ratio Thu Jul 07, 2011 10:14 pm

Hiru

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If the company has no intention to divest the subsidiaries and associates in near future at a loss, I should use Group Figures. But, I have anther exception when the size of the group companies and quality of earnings and assets are concerned.

Basically, group figures must be used as the parent company has the risk and rewards of other companies.

This is my idea and if somebody explains this I am very happy to learn from.

mcyi9rt4 · 4 Re: help on calculating ratio Fri Jul 08, 2011 3:40 pm

mcyi9rt4

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i also am confused if any one wished to share wud like it thxs

nkalansu · 5 Re: help on calculating ratio Fri Jul 08, 2011 7:50 pm

nkalansu

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thambi wrote:okay just a quick question in a companys quaterly/annual statemnt which figure do i use when calculating a ratio
the group or the company for example i was lookin at free lanka and its assets for ordinary shares of the group is above 4 and
for the company is below 2 so which one do take if i want to know what the asset value per share is for free lanka ?

thanks in advance

You are talking about FLCH. FLCH is the holding company. It does not make any sense to look in to the Parent company alone since main contribution comes from its investments on subsidiary/associate companies in the group. So If it is the holding company you are interested then take Group Figures.