Analysis Assignment Example | Topics and Well Written Essays - 250 words - 3

Analysis - Assignment Example A higher ratio is recommended since it indicates the firm’s ability to raise revenue from the investments. The 7th year had the best performance with approximately 24% return on equity this was followed by the 5th year; the 7th year exceeded the investor’s expectations while the 5th met the investor’s expectations. This is favorable to the stockholders since it implies that for every dollar invested the shareholder received 24 cents. The worst periods were 8th, and 10th year with negative ROI meaning the company was operating at a loss and 9th year when the ROI was 0. Stock Prices -Stock prices in most cases show the firm’s performance, a method of communicating to the public. The prices are expected to increase as the company grows. From the graph the investors have been expecting the prices to grow, the 5th and 7th years met these expectation while the rest of the years failed to do so. This is a bad image of the company and shows inefficient operations. In conclusion, the EPS, ROI, and stock prices are necessary tools to indicate on the firm’s performance and management efficiency. It is clear from the analysis that the 7Th year was the best performed followed by the 5th year. Poor performances were in 8th, 9th and 10th