Debt and Usury Case Usury - 8048 Words

History and Background To begin my research, I wanted to get a clear understanding of just exactly what usury was and how it came about. The word usury is derived from both the Medieval Latin word usuria, meaning interest or excessive interest, and from the Latin word usura, which simply means interest. At that point in time, the definition of usury meant the charging of interest on loans, but over time after the legislation of countries to limit the rate of interest on loans, the definition of usury came to mean the interest above the lawful rate. As it stands today, usury would be found to mean the charging of unreasonable or relatively high rates of interest. The practice of usury can be traced back over four†¦show more content†¦Adam Smith, who was considered the â€Å"Father of the Free-market Capitalism† and known for his general advocacy of laissez-fair economics, however, was strongly in support of controlling usury (Jadlow, 1977; Levy, 1987). While he didnâ €™t want to completely exclude interest, he was in favor of the imposition of an interest rate ceiling (Smith, 1937). Another reformist was Silvio Gesell, a successful nineteenth century merchant in Germany and Argentina, who condemned interest on the basis that his sales were more often related to the pride of money than people s needs or the quality of his products (Gesell, 1904). His proposal of making money a public service subject to a use fee led to widespread experimentation in Austria, France, Germany, Spain Switzerland, and the United States under the banner of the so-called â€Å"stamp script movement†, but these initiatives were all squashed when their success began to threaten the national banking monopolies (Kennedy, 1995). Usury Law Generally, usury law is used for the most part in the handling of consumer credit cases that involve the statutes and regulations which limit the charges that creditors may assess when extending credit to consumers. There are many statutes and regulations which restrict credit charges. The oldest of these are referred to as general usury statutes which are established to set the maximum rate of interest that can be charged in any loan transaction in aShow MoreRelatedWilliam Shakespeare s The Merchant Of Venice1532 Words   |  7 PagesYet, from an Islamic perspective, the answer is no. While the American public seems enamored with more and more debt, Islam has distinct regulations regarding the acquisition of personal debt. The reason is clear: In Islam, economics and religion are inextricably linked—a concept completely foreign to all but the most fundamentalist Americans. The ills of money-lending from the Eastern perspective have been fodder for Western literature for centuries, replete with illustrations that mirror the differencesRead MoreAnalysis Of Riba ( Interest ) As A Cause Of Imbalance Society And Its Islamic Perspective Essay1363 Words   |  6 Pagesits followers. Keywords: economy, Riba, interest, usury, imbalance Introduction: The word Riba Ø ±Ã˜ ¨Ã˜ § is an Arabic word which means to increase, grow, augment, educate (child), swell, mount up(1). The word is also used in Holy Quran in different meanings but when it appears in the verses based on financial matters then it means ‘Interest’ or ‘Usury’(2). That’s why the term Riba is used in this paper instead of the word ‘interest’ or ‘usury’. Similarly, Shah Waliullah defines it as, ‘a loan thatRead MoreMedieval Anti Jewish Nationalism During The Reformation Of The Roman Empire1919 Words   |  8 Pagesare replaced by the image of the stubborn, blind Jew rejected by man and God. Again the Jew is the blasphemer of Christ and master of a campaign to undermine Christian beliefs. ..... The Jews attempt to destroy Christendom from within through their usury and their false teachings, and from without, by their treachery on behalf of the Turks. Indeed the Jewish hatred for the gentile is so great it has become part of the Jewish messianic hopes which envision a day when the Jews will have enslaved or murderedRead MoreThe Modernization Of Money And Interest Essay2386 Words   |  10 Pagesother commodities with immeasurable values, the intrinsic values of coinage made from metal, such as gold and silver, were more stable. These advantages initiated the abstraction of money, changing money from the terminals of transactions in the calf case into the media of trades. This change triggered disasters. During the time of Greek and Roman civilizations, from the sixth century B.C. to the fourth century A.D., interest rates were relatively high, compared with those in modern financial systemsRead More The Distance that Separates us from Shakespeares Merchant of Venice2136 Words   |  9 Pagesstory, where it may have originated, and what it may have meant to a 16th century audience, may cause us to revaluate this very significant element of the play. The tracing of the possible sources of the story and the examining of the history of usury as well as its position in Elizabethan society may actually serve as testimony on behalf of Shylock and his Jewish identity. A careful look at the text In order to begin a comprehensive analysis of the pound of flesh story, it isRead MoreEssay on Banking2495 Words   |  10 Pagesultra-profitable credit charges that go beyond reasonable standards for taking an extra benefit from a specific situation in detriment to their customers, are guilty of usury. Usury may be defined as demanding significantly more money back from customers than is just and fair. Financial institutions consistently engaged in usury are accordingly a subject of our concern. While we do not necessarily endorse bureaucratic regulations which may be excessively burdensome and counter-productive, we do expectRead MorePolitics And City Of God : Issues And Medieval Political Thought Essay1717 Words   |  7 Pagesalso established what became known as the Ecclesiastical courts. These courts were designed to handle cases involving widows, orphans, university students, crusaders and contracts. Infact the â€Å"seal of God† given by priests on contracts involvi ng two businessmen made it possible for the priests to intervene in business matters and by implication exercise control over commercial concerns. In the case of exercising power and control over local landlords and leaders, the Roman Catholic Church inventedRead MoreIslamic Banking And Conventional Banking8251 Words   |  34 PagesIslamic banking There are many distinct types of financial and commodity transaction system in the Islamic banking. Every sort of transaction is guided by Sharia council and followed by the Islamic valued and absolutely being refrain from the Riba or usury. Some transaction systems are as follows. 01.Wadiah (Safekeeping): Wadiah means custody or safekeeping of assets. In the process of Wadiah arrangement, the client will deposit cash or other assets in a bank for safekeeping. The The bank guaranteesRead MoreUnited States Is Becoming A Game Only The Privileged Can Play Essay1264 Words   |  6 Pagesfreshman from the bottom quarter income bracket going to the top colleges (Colleges, American Association Of Community). A large reason for this is the fact that government funding for students college education has largely decreased with student loans/debt being more prominent. Added to this is the fact that many minority communities are still living with the repercussions of America’s white prejudice past. In 2005, â€Å"within five years of entering college, 40 percent of students from the top socioeconomicRead MoreConcept of Maqasid Al-Syariah1824 Words   |  8 Pageswithin the community). The Prophet Muhammad once said that his community (i.e. the Muslim community) would never agree on an error. Qiyas (analogy) In cases when something needs a legal ruling, but has not been clearly addressed in the other sources, judges may use analogy, reasoning, and legal precedent to decide new case law. This is often the case when a general principle can be applied to new situations. (See the article Smoking in Islam for an example of this process at work.) 3. Type and categories

Collective Behavior - 11916 Words

Chapter I: The Study of Collective Behavior A. What Is Collective Behavior? As we review these pages for the final time sections of Los Angeles are in flames in response to a jury verdict exonerating police whose beating of an African American man was captured on videotape. Supporters and opponents of abortion take to the streets daily. Mexico City searches for answers to a gas explosion that leveled a 40 square block area. The number of men wearing pony tails and one earring and the number of people saying and understanding yo, dude seems to be increasing. These diverse actions fall within the area sociologists call collective behavior. Some fields in sociology are relatively easy to define and their meaning can be grasped†¦show more content†¦An even more extreme view argues that the field as a whole should be abolished because all complex social behavior is collective and to a degree dynamic. Hence the field has no unique subject matter. The collective behavior perspective is thought to apply to all behavior and no unique concepts, theories or methods are needed to understand it, apart from general sociological concepts. If we were starting fresh we could certainly find a better name for the field and perhaps a more logical way of dividing it up (although this could be said of most intellectual fields). The term collective behavior does not have much literal meaning since strictly speaking it includes any group behavior. Yet once established, intellectual traditions are slow to change. The initial definitions of knowledge and questions in this field still exert a powerful hold. Courses and books usually contain the words collective behavior. Critics of this field raise important issues, but as in Kiplings fable of the blind persons and the elephant (where each person correctly identifies a separate part, but all fail to see the whole animal), we think there is a broad logic uniting the field. The logic involves emergent group behavior in settings where cultural guidelines are non-specific or lacking, inadequate, or in dispute. B.Show MoreRelatedStudy of Collective Behavior by Sociologists1307 Words   |  5 PagesCollective behavior can be observed in many forms. In the view of sociologist Neil Smelser, â€Å"collective behavior is the relatively spontaneous and unstructured behavior of a group of people who are reacting to a common influence in an ambiguous situation†. (Stolley, 2005) Other sociologists define collective behavior as spontaneous activities that involve large numbers of people violating established norms. This fluidity makes it more difficult for sociologists to generalize about people’s behaviorRead MoreCollective Behavior11901 Words   |  48 PagesChapter I: The Study of Collective Behavior A. What Is Collective Behavior?   As we review these pages for the final time sections of Los Angeles are in flames in response to a jury verdict exonerating police whose beating of an African American man was captured on videotape. Supporters and opponents of abortion take to the streets daily. Mexico City searches for answers to a gas explosion that leveled a 40 square block area. The number of men wearing pony tails and one earring and the number of peopleRead MoreThe Theory Of Collective Behavior Essay1219 Words   |  5 Pagesand others by engaging in various types of collective action, such as protesting in the streets, that dramatize those grievances and concerns and demand that something be done about them.† (Ruud Kreisi Hanspeter, Saul.A. Sarah, Snow.A. David, pg 3) The theories of social movements are discussed below. Theory of collective behaviour: Collective behaviour bears an intimate relation to social change. In broader sense, collective behaviour refers to the behaviour of two orRead MoreCollective Behavior And Their Theories Essay1745 Words   |  7 PagesQuestion 1: Discuss collective behavior and their theories. Collective behavior according to Smelser is relatively spontaneous and unstructured behavior of a group of people who are reacting to a common influence in an ambiguous situation. Another definition given in the book Sociology: Comprehensive edition indicates that collective behavior refers to relatively unplanned and relatively unstructured behavior by large numbers of individuals acting with or being influenced by other individuals. TheRead MoreCollective Behavior Theories1765 Words   |  8 PagesRobert Park first coined the term collective behavior in the early 1900s. In class, it was taught that his definition included social unrest, crowds, sects, publics, mass movements, crowd mind, propaganda, and fashion as forms of collective behavior. Collective behavior has shaped our everyday lives in more ways than most of us care to think about. Collective behavior is defined as any event in which a group of people engages in unusual behavior. Unusual may have a negative connotation for someRead MoreCommon Forms Of Collective Behavior1511 Words   |  7 Pages Collective behavior is a term sociologists use to refer to a miscellaneous set of behaviors in which large numbers of people engage. More specifically, collective behavior refers to relatively spontaneous and relatively unstructured behavior by large numbers of individuals acting with or being influenced by other individuals. Relatively spontaneous means that the behavior is somewhat spontaneous but also somewhat planned, while relatively unstructured means that the behavior is somewhat organizedRead More Collective Behavior Essay481 Words   |  2 Pagesnbsp;nbsp;nbsp;nbsp;nbsp;This event is an example of a social movement. This was simply an organized group of people that gathered for the purpose of resisting change (In this case, the strategies discussed by the aforementioned institutions) through their collective action. Specifically, this type of social movement is called a resistance movement, because this group was in opposition to change of a certain aspect of our society. nbsp;nbsp;nbsp;nbsp;nbsp;The main reason why activists gathered in protestRead MoreThe Collective Behavior within an Organization624 Words   |  3 PagesOrganizational culture is a way to describe the collective behavior within an organization, the values, norms, language, symbols, status, and beliefs and habits. We can also view organizational behavior as the collection of behaviors within an organization that cause those members to perceive their organization and others. In fact, organizational culture affects the way individuals and groups interact with each other, clients, stakeholders and the public. Because people are so individualistic, itRead MoreAn Example Of Experiencing Collective Behavior1875 Words   |  8 Pages16. An example of experiencing collective behavior in life is one particular moment during college. At my time at USM, I participated in multiple protests across campus. The first being the students of Missouri protest. This protest was run by the group USM f uture, a student run organization that focuses on bringing more diversity to USM. Maine is a very white populated state with little diversity. I’ve noticed that most of my classmates are white and some classes, I tend to be the only person ofRead MoreCollective Behavior and the Assertion of Individuality: A Study956 Words   |  4 Pagesare engaged in collective behavior. THESIS: Those who are able to overcome collective behavior and allow for their individuality to determine their own outcomes exemplify the best of human nature. The most convincing piece of evidence to reinforce this assertion is found at the beginning of the 15th chapter of Thios Societys Myths and Realities: An Introduction to Social Change. Deviation from collective behavior, which the author defines as spontaneous and unstructured behavior (Thio, p. 474)

Airbag Technology for Passive Supplemental - myassignmenthelp

Question: Discuss about theAirbag Technology for Passive Supplemental Restraint. Answer: Introduction Automotive airbag technology was developed to provide proper safety to drivers and passengers. Today's airbag system is a passive supplemental restraint that is used as pad for the drivers or passenger during frontal impacts. In todays era this technology is smartly adaptive and will be used in future as well. The need of the tenants regarding the safety while driving as well as performing check of the entire sensor like out-of position sensing and child seat sensing disables the airbag whenever some misconception happens. Description Airbag is a device used for vehicle safety and is designed to adapt to rapid changes during a collision. It prevents the event to cause harmful damage. It was invented by an engineer named as John Hetrick. He designed this technology with his experience regarding air compression in Navy. It was a valuable invention with very less economic expenditure. The invention was due to the inspiration to provide safety to the drivers. As there were rapid increase in the accidents rates and a law to provide automatic protection was launched. The federal government announced to improve the safety measures and this facility of air bag was introduced in the market. Air bag is a cushion which protects the automobile in case off collision. It consists of air bag module, monitoring system, sensors, indicator and steering connector. These elements are interconnected and functions at time of accident. The sensor visualize the scenario of car and whenever a massive collision occurs the sensor detects th e impact and heats up the chamber to perform a fast chemical reaction. The reaction produces nitrogen gas that fills the air balloon within seconds. This bag covers the entire car and the nitrogen gas gets released as soon as bag is opened. Airbags were introduced to us to reduce fatality rates in vehicular crashes. Ever since its introduction into the car safety system, the number of fatalities and injuries a year have reduced and have dramatically decreased. The finesse of detail in the airbags technology is vital as it is the reason for the decreased injury and death rates. Thus it is widely used in the current era as it safeguards the life of people while travelling. There are certain situations in which accidents take place without any fault, so to avoid deaths and injuries in that case airbag technology is widely used. It was issued on 18 August 1953 in United States (Ashley, 2015). It was adopted in place of substitution of seat belts for safety purpose. It gained wide popularity in both local and global market as the efficiency of airbag was widely accepted as it safeguards the life during car crash. The boom in the market regarding airbags was due to the increase in awareness among consumer regarding vehicle safety features. The growth in automobile sector was due to the completion from other car manufacturing companies. The reason for significant growth in local and global market can be seen due to government legislations. Whenever the vehicle collides with a pedestrian or hits the bumper it would be inflated to provide a softer impact, much like an airbag in the steering wheel. While an inflatable bumper might invoke ideas of pedestrians bouncy off into the path of other vehicles, it was insisted that it would collapse during the impact to absorb the energy, much like the airbag mounted in ste ering wheels inside cars do (Bennett, Rokas and Chen, 2017). After emerging of air bag market the old generic systems that were previously used are not currently available. In order to improve the functionally of the airbag during crashes, we must understand the fundamentals of an airbag. The purpose of an airbag is to provide the occupants with a soft cushion that lowers the impact on the passengers bodies upon contact. Therefore, the speed at which the airbags are release play an immense role. If the airbag isnt released on time, it would be against its purpose of being available to the passengers as the impact would have already occurred. The airbag can also be dangerous to the passengers if they are seated to close as with the latest technology, airbags are deployed with milliseconds to ensure it is present before the body of the passenger hits any surface of the car due to the crash impact. This time can be even quicker if pre-impact sensors are installed onto the bodies of the car, so the airbags can be released millisecond before impact even occurs. (Source: https://myassignmenthelp.com/free-samples/new-invention-car-airbag) The motivation for developing airbag is to help the customers sitting in the car to reduce collision injuries and making the car driving safe. It reduces the damage caused to the customers during injury. In last few years road accidents are taking place frequently that is why introducing airbags were an emerging need in the market. A number of deaths were increasing and the reason was road accidents thus demand of safety raised in the market (van Ratingen, 2016). The living standards as increased and the willingness of customers to spend money globally increased the airbag market. Increasing purchases of luxury vehicles that have airbags protect people from injuries and death. Companies like Mercedes, Porsche, Audi, and Bentley have installed airbags in their cars so that passengers are protected at time of driving. We can introduce a sensor into the body of the car (Pradeep, et. al 2017). This sensor can detect the speed of the crash and deploy the airbag according to the intensity of the crash. With this system, the passenger will not get hit by the airbag at a high speed when he/she was involved in a low speed crash (Thomas, et. al, 2015). Thus if a person drives fast it can be identified and stop an occurrence of risk by indicating some safety measures. The technology has changed the living standard as the riders need not to worry about the collision as they have the saviour which would be used to save at time of collision. While driving over highways the speed is often ignored which sometimes lead to severe accident that to save the life of all people sitting in the car airbags were generated. These are used to minimize the risk of injuries and deal in the rollover cases (Patrawala, Ghorpade and Gore, 2016). The use of airbags has protected a person in right circumstances. As research showed that many drivers used to drive without wearing seat belts thus an alternative was developed that is using airbag facility. The development of this technology has reduced the risk among small childrens as they dont wear seat belts while travelling. Airbag gets activated in milliseconds so that person is safe as soon as some crash occurs (Kuk and Shkrum, 2017). The only motive for developing the concept of airbag was to reduce the death rates du e to road accidents. Other than that while travelling for long distances driver might un-accidently take a nap, thus airbag act as a saviour in that situation. Airbags takes care of the entire situation on road by detecting the entire possible situation that may cause damage to the person. If the car doesnt have airbags it will increase the chances of injuries and will enhance the risk factor while travelling. It is true that there are certain levels of risk that can occur using airbags but the risk of death is much greater than getting injured by an airbag (Merkle and Harrigan, 2016). Hence, it is suggested that vehicle has airbag so that it doesnt cause any damage. Car crashes are unpredictable and can occur from any angle. Therefore, airbags are not only important in the frontal region but also from other angles. Having a higher number of airbags in a car doesnt necessarily mean that it will be safer. Releasing all airbags without a crash can act as a higher detrimental to the passengers as the passenger could receive additional blows to their body that were not necessary in the situation (Hyman, et. al, 2016). An improvement in this area of safety would be a smart release system. Running crash patterns and speeds into algorithms and comparing them with the direction of impact taken by the passengers counteract these directions with the amount of force required from the airbags to maintain the safety of the passenger. These airbags should target specific body parts, too quickly restrain the passengers body from moving. For example, knee airbags or inflatable seatbelts, these suggestions would eliminate movement rapidly. In short, airbags are yet to be fully revolutionized as there are several areas in which it can be improved to ensure a higher level of security for the cars passengers. Increasing the time of release by introducing sensors, counter-acting specific directions during crashes based on side of impact, alternating speeds of airbags on release are just several of many possibilities there are to improve the airbag technology system (Ashley, 2015). As for the existents of airbags, no other technology has been released to outshine to idea of airbags. Personally, an idea of releasing bumpers just before contact will be revolutionary but also expensive and very hard to perfect and will take decades to perfect the concept. Consequently, airbag technology system is going to be the dominant car safety technology for the decades to come. Airbags were introduced for safety purpose and has been widely adopted in the market. Conclusion Airbag technology is a boom in the market that as covered the entire market and is a future technology for assuring vehicle safety systems. Although Mercedes has been working on this technology for several years, it isn't available on any production models yet and may not be seen on the road for another few years. With the current evolution of airbags and their pervasiveness within the automotive world, it wouldn't be a stretch to imagine future cars using airbags to not only protect passengers, but to actually stop cars as well. References Ashley, B., 2015. Defective Designs in Airbag Technology. InThe Forum: A Tennessee Student Legal Journal(Vol. 2, No. 1, p. 4). Bennett, J., Rokas, O. and Chen, L., 2017. Healthcare in the Smart Home: A Study of Past, Present and Future.Sustainability,9(5), p.840. Hyman, D.A., Saha, S., Nayar, H.S., Doyle, J.F., Agarwal, S.K. and Chaiet, S.R., 2016. Patterns of facial fractures and protective device use in motor vehicle collisions from 2007 to 2012.JAMA facial plastic surgery,18(6), pp.455-461. Kuk, M. and Shkrum, M.J., 2017. Injury Patterns Sustained in Fatal Motor Vehicle Collisions with Driver's Third?Generation Airbag Deployment.Journal of forensic sciences. Merkle, A.C. and Harrigan, T.P., 2016.Research Literature Review: The Use of Air Bags for Mitigating Grade Crossing and Trespass Accidents(No. DOT/FRA/ORD-16/22). Patrawala, Y.I., Ghorpade, R.D. and Gore, R.G., 2016. Effectiveness of pedestrian safety technologies for the new age car: a review.International journal of current engineering and technology,6(5), pp.1522-1531. Pradeep, S.A., Iyer, R.K., Kazan, H. and Pilla, S., 2017. Automotive Applications of Plastics: Past, Present, and Future. InApplied Plastics Engineering Handbook (Second Edition)(pp. 651-673). Thomas, S.D., Weiss, H.C. and Zawisa, K.M., GM Global Technology Operations LLC, 2015.Vehicle and an airbag assembly for the vehicle. U.S. Patent 9,114,776. Van Ratingen, M.R., 2016. Saving Lives with Safer Cars: The Past, Present and Future of Consumer Safety Ratings. InProceedings of the IRCOBI Conference.

Ratio Analysis and Capital Budgeting

Question: Calculate some ratios for your firm (and also its economic profit) and assessing its business performance. Answer: Net profit margin: This is the ratio that helps in the calculation of the return on the sales. This is the profitability ratio which measures the amount of the return that the company is earning on the sales that is being generated by the company. The net income also compares the net income and the net sales of the company. The profit margin shows the % of the sales that is left after the payment of all the expenses (Accounting course, 2016). Net profit after tax/sales -4.8% 3.7% 2.6% 7.6% The above merely shows that the company is earning losses. The company was earning profits during the early years but the operations are being carried out wherein the company is earning losses. The company is incurring losses which means that the company consuming all its profits and all the necessary measures must be undertaken so that the company could start earning profits again. Return on assets: This is the ratio which is also known by the name of return on the total assets which is the profitability ratio. This measures the income which has been produced by the total average assets by the company. In the other words, the return on the assets helps in the measurement of the way in which the company is managing the assets for the purposes of profits during the period under review (Accounting course, 2016). Net profit after tax/total assets -2.0% 1.6% 1.3% 3.5% The above merely shows that the company is earning losses. The company was earning profits during the early years but the operations are being carried out wherein the company is earning losses. The company is incurring losses which means that the company consuming all its profits and all the necessary measures must be undertaken so that the company could start earning profits again. The stated ratio shall improve only when the net income earned by the company has improved. Days of inventory: This is the ratio which helps in the measurement of the number of days the company takes to sell the inventory. The lesser this ratio, the better it is for the company (Accounting course, 2016). Total asset turnover ratio: This is the efficiency ratio and helps in the measurement of the ability of the company to generate the sales from the employment of the assets. This helps in the comparison of the net sales with the total assets of the company. This helps in the measurement of the efficiency of the company when it comes to the use of the assets for the purposes of generation of the sales (Accounting course, 2016). Sales/total assets 0.41 0.44 0.50 0.46 The above ratio listed above shows that a decrease which is not good for the company since it means that the company is not putting enough efforts for the purposes of generating sales whereas the company should since the company evolves for generation of the profits. Current ratio: This is the ratio which is the liquidity ratio and helps in the measurement of the ability of the company to meet the liabilities that are short term in nature. This is done with the help of the current assets. The current liabilities are paid off using the current assets of the company. Current assets/current liabilities 1.03 0.68 0.51 0.42 The company with the greater amount of the current assets is able to pay off the short term liabilities in the shorter duration of the time. The company shows an increasing current ratio which is good since that means that the company is able to clear off its current liabilities with the help of the current assets (Accounting course, 2016). Debt equity ratio: This is the financial or the liquidity ratio which means shows the % of the financing of the company coming from the creditors and the investors. When this ratio is high, it shows that more bank loans are being used than the financing by the investors (Accounting course, 2016). Debt/equity 48.7% 32.0% 25.1% 20.8% The above shows that more amount of debt is being used which is not good because more debt means more risk for the company. Increased usage of the debt in the business means an increased amount of payment of the interest on the debt that has been borrowed. Equity ratio: This is the ratio that is the leverage or the solvency ratio of the company. This ratio helps in the measurement of the amount of the assets that are financed by the investment by the owners. This is achieved by the way of comparing the amount of the total equity invested in the company to the total assets. This ratio highlights two of the crucial components of the investment wherein the first is the total amount of the assets of the company that are owned by the investors of the company (My accounting course, 2016). Equity/total assets 80.6% 85.6% 94.9% 98.2% There has been a decrease in the equity ratio which indicates that the total assets of the company are being financed by the funds of the equity shareholders which in turn means that the debt is being used for the purposes of financing the assets of the company. This is not a god indication due to the reason that the increased debt shows more interest on the debt that has been borrowed for the company. Earnings per share: This is the ratio which is the earnings per share of the company. This is the market prospect ratio of the company. This is also known as the income per share and helps in the measuring of the amount of the money on each share of the company. It means the amount of the earnings on each share in case all the profits are distributed on the shares that are outstanding (My accounting course, 2016). Net profit after tax/nos of issued ordinary shares (0.60) 0.48 0.35 1.03 This means that the dividend per share is decreasing with each passing years. This shows lack of profits being earned by the company. Dividends per share: This is the sum that has been declared as the dividends for each of the ordinary shares that has been issued. This is computed by the amount of the dividends divided by the number of the equity shares that are outstanding. Dividends/number of issued ordinary shares 0.73 0.58 0.48 0.88 There has been a decrease in the amount of the dividend that has been earned during the year. This merely shows that the company is earning a lesser amount of the dividend on each of the shares that are outstanding. Price earnings ratio: This is the ratio whose short form is the P/E ratio. This is the market prospect ratio of the company which helps in the calculation of the market value of the stock to the relative earnings of the company. This ratio is compared with the market price of each of the share (My accounting course, 2016). Return on equity: The return on the equity is the ratio which is the profitability ratio. This helps in the measurement of the ability of the firm which is the generation of the profits from the investment of the shareholders in the company. This is the amount of the profit that has been earned by the investment of the equity into the company and it helps in the generation of the profits of the company (My accounting course, 2016). Comprehensive Income/shareholders' equity -2.45% 1.85% 1.35% 3.56% The above shows that the return has reduced. And it is due to this fact that the return on the equity has become negative. Return on net operating assets: This is the rate of the return on the assets that are operating. It helps the management in minimising the other asses in the books of account that is contributing to the revenue being generated by the company (Accounting tools, 2016). Operating income after tax (OI)/net operating assets (NOA) -0.96% 2.54% 2.25% 4.43% This shows that the operating income has become negative and the main reason behind the same is the decreasing operating income being earned by the company. Net borrowing cost: This is the borrowing cost of the company. This must be at the level wherein the interest on the borrowed capital is at the same level as the investment in the assets of the company. Profit margin: This is the ratio that helps in the calculation of the return on the sales. This is the profitability ratio which measures the amount of the return that the company is earning on the sales that is being generated by the company. The net income also compares the net income and the net sales of the company. The profit margin shows the % of the sales that is left after the payment of all the expenses (Accounting course, 2016).The above merely shows that the company is earning losses. The company was earning profits during the early years but the operations are being carried out wherein the company is earning losses (Accounting tools, 2016). The company is incurring losses which means that the company consuming all its profits and all the necessary measures must be undertaken so that the company could start earning profits again. Asset turnover: This is the efficiency ratio of the company which helps in the measurement of the generated sales from the assets that have been employed by the company (My accounting course, 2016). Sales/net operating assets (NOA) 0.41 0.44 0.50 0.46 The above shows that the return that is being used for the purposes of generating the sales has reduced. Economic profit: Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs; accounting profit consists of revenue minus explicit costs (Boundless, 2016). (RNOA - cost of capital) x net operating assets (NOA) (1,451.5) (169.4) (196.0) 469.0 This is negative which is not for the company. NPV and IRR: The net present value of the company comes out to be positive with the rate of return to be 14%. In case, the internal rate of return that is company wants comes tout to be 10% or less than 14%, then it would be wise for the company to accept the investment in this project since then the company would be in profit rather than being in losses. Recommendations: Taking into base ratio analysis: If we check out the net profit margin ratio, it clearly depicts that Company is in decreasing order which implies that profitability is reducing. Hence it is advisable that steps must be taken to increase the sale by initiating the marketing as well as simultaneously cost must be reduced (Accounting tools, 2016). Also, the economic profit shows huge decrease even negative. This scenario clearly predicts that the company is not showing good performance. Taking into consideration the same it is required to undertake initiative so that the performance of the company could be increase. Moreover, The company was earning profits during the early years but the operations are being carried out wherein the company is earning losses. The company is incurring losses which means that the company consuming all its profits and all the necessary measures must be undertaken so that the company could start earning profits again. For NPV and IRR: Net present value for the investment is positive which implies that proposed investment must be undertaken so positive NPV clearly depicts that the product could be undertaken without any hassle. Thus as already stated The net present value of the company comes out to be positive with the rate of return to be 14%. In case, the internal rate of return that is company wants comes tout to be 10% or less than 14%, then it would be wise for the company to accept the investment in this project since then the company would be in profit rather than being in losses (Accounting tools, 2016). References: Accountingtools.com. (2016).Return on Operating Assets - AccountingTools. Difference Between Economic and Accounting Profit. (2016).Boundless. My Accounting Course. (2016).Asset Turnover Ratio | Analysis | Formula | Example. My Accounting Course. (2016).Asset Turnover Ratio | Analysis | Formula | Example. My Accounting Course. (2016).Current Ratio | Formula | Analysis | Example. My Accounting Course. (2016).Days Sales in Inventory Ratio | Analysis | Formula | Example. My Accounting Course. (2016).Debt to Equity Ratio | Formula | Analysis | Example. My Accounting Course. (2016).Earnings Per Share | Formula | Analysis | Example. My Accounting Course. (2016).Equity Ratio | Formula | Analysis | Example. My Accounting Course. (2016).Price Earnings P/E Ratio | Analysis | Formula | Example.