Worth Ratio Research Articles

Annuity puzzle: Evidence from a Swiss pension fund

AbstractWe analyze individual annuitization decisions at retirement in an environment with mandatory participation in a funded pension pillar and low average annuity price. Using administrative data from a large Swiss insurance company over the period 2011–2015, we document that, even in this favorable environment, only 42.7% of the retirees fully annuitize, against 45% taking full lump sum. We show that individual annuitization decisions strongly respond to financial incentives, measured by the Money Worth Ratio, and to the tax rates on annuity and lump‐sum payments. Lump‐sum payments are more common among French‐ and Italian‐speaking individuals. Using Survey of Health, Ageing and Retirement in Europe data, we show that French‐ and Italian‐speaking Swiss are more likely to leave inheritance—thus suggesting that preferences for bequests may affect annuitization decisions. Finally, we provide evidence of asymmetric information, using the unused observable test, to show that individuals living in high mortality municipalities are less likely to annuitize and more likely to cash out their pension wealth.

Business Cycles and Capital Structure Choices: Evidence from India

The paper explores variations in leverage ratios of industries grouped on the basis of business cycles – as growth industry, defensive industry and cyclical industry. Leverage is measured using Total debt to Net worth ratio, Long term debt to Net worth ratio and Short term debt to Net worth ratio. The debt ratios of industries are evaluated during two time phases– Phase I (2008/09 to 2012/13) and Phase II (2013/14 to 2017/18). The sample consists of 172 companies randomly selected from the largest 500 companies in India. The results suggest significant variations in the debt ratios of industries in each of the time phases. The results also show statistically significant variations in total and long-term debt ratios between Phase I and Phase II. The study is distinct as it gives a new insight into the capital structure decisions of industries using a novel industrial classification base.

Application of small perturbation theory for assessing variations of prompt neutron lifetime in a lead-cooled fast reactor

The paper considers the applicability of small perturbation theory to assessing the variations of the prompt neutron lifetime caused by variations in the isotope composition of a lead-cooled fast reactor. The generalized small perturbation theory formulas have been developed to calculate derivatives of the prompt neutron lifetime regarded as a bilinear neutron flux and neutron worth ratio. A numerical algorithm has been proposed for the step-by-step application of the small perturbation theory formulas to assess the prompt neutron lifetime variations caused by a major perturbation in the reactor isotope composition, e.g. by the complete change of the material used earlier as the neutron reflector. The advantage of the proposed approach has been shown which consists in that it is basically possible to determine the role of different neutron reactions, isotopes and energy groups in and their contributions to the total prompt neutron lifetime variation caused by major changes in the reactor isotope composition.

An Analysis of Operating Performance of Selected Paper Companies in India

Purpose: The aim of this research work is to analyze and compare profitability performance of selected paper companies in India. Approach/Methodology/Design: An analytical study method is employed in this research work by relying on secondary data. In this research work 12 paper companies are selected as a sample based on their higher net sales and the study period are last10 financial years from 2012-13 to 2021-22. Ratio Analysis is used as an accounting tool in which six profitability ratios are employed. One-way ANOVA technique of parametric test is used as a statistical tool to identify the difference among sample means. Findings: The major finding of the research work indicates that in all the selected paper companies the profitability performance of shows fluctuating trend during the study period of 10 years. The overall performance was good and satisfactory in Satia Industries Ltd., JK paper Ltd., Seshasayee Paper and Board Ltd. and NR Agarwal Industries Ltd. and it was low and dissatisfactory in Orient Paper & Industries Ltd. and Astron Paper & Board Mill Ltd. for all the selected profitability ratio during the study period. The results of statistical test revealed that in gross profit ratio, operating profit ratio and return on assets ratio formulated null hypotheses are rejected and in net profit ratio, return on net worth ratio and return on capital employed ratio formulated null hypotheses are accepted. Originality/value: In this research work profitability analysis is carried out which is helpful to know the profitability performance of selected paper companies. The result would help investors to make right choice of investment in selected companies. It would also identify that how efficiently a business can generates profit and value for its shareholders from its sales or operations, shareholders' fund or balance sheet’s assets.

Who outperforms automobile industry in India? Comparative study on financial performance between tata motors versus M& M LTD

Background: The immense growth of automobile industry in India made the people to satisfy their desire in driving the most luxurious vehicle. Every other day, we have been getting news about some new launches, some low-cost cars which are all custom-made in a sophistication such that even the common man can afford the vehicle. The Compound Annual Growth Rate of the Indian automotive industry’s sales between financial year 2009 and 2020 comes around 8%. Purpose: The purpose of this study is to know about the financial performance of leading automobile industry by comparing their financial statements. Objectives: The financial position of TATA motors and M & M Ltd were ascertained with the help of ratios as a parameter. Secondly to analyse the financial performance of both the companies by comparing its financial statements. Methodology: In this research work two automobile companies in India were selected for analysis. The selected automobile companies last five years i.e., from 2018 to 2022 financial position were analysed. This research is based on the secondary data. Different ratios were used to analyse the financial position of TATA motors and M & M Ltd. Findings: By analysing the financial position of the two companies it is clear that the net sales of the M & M Ltd is higher than the Tata Motors. It shows that even though the Tata Motors is performing well in its sales it has to concentrate to reduce its expenses to increase the profit. Likewise in the aspects of earnings per share, return on capital employed ratio, return on net worth ratio, gross profit ratio and net profit ratio the Tata Motors is lesser than the M & M Ltd. After analysing the aspects in this research, it says that M&M Ltd is betterthan Tata Motors from the year 2018 to 2022.

The Money's Worth Ratio Evaluation of Variable Annuities with Guaranteed Minimum Accumulation Benefits

The Money's Worth Ratio Evaluation of Variable Annuities with Guaranteed Minimum Accumulation Benefits

Optimal Exchange Rates: A Stochastic Control Approach

We present novel formulas for the determination of the optimal values of the exchange rate and the external (foreign currency) debt. A stochastic differential equation is developed that relates the net worth of an economy to both its exchange rate and level of external debt. Using the martingale optimality principle, the optimal values for the exchange rate and the external debt are derived. Applied to Egypt, we find that its actual nominal exchange rate has stayed above its optimal value since the early 1990s, except for two years, and that the actual external debt-to-net worth ratio is lower than the optimal one for most of the time. Since 2013 the actual external debt-to-net worth ratio is close to the risky levels of the optimal values.

Impact of Capital Structure on Profitability of Selected Aquaculture Companies in India

The main objective of this paper has been to analyze the impact of capital structure practices on profitability of top two aquaculture companies in India. This paper investigates Capital Structure Ratios such as Debt Equity Ratio (DER), Dividend Pay Out Ratio (DPR), and Earnings Retention Ratio (ERR) and Profitability Ratios such as Return On Net Worth Ratio (RONW), Net Profit Ratio, Return On Capital Employed Ratio (ROCE) and Earning Per Share (EPS) for a period from 2017-18 to 2021-22. Descriptive Statistics, Correlation and Regression analysis have been performed to show the relationship between Response (Dependent) variables and Independent Variables.

Evidence on the Existence of Inter-industry Differences in Capital Structure of Leading Indian Companies

The objective of this paper is to provide additional evidence on the inter industry differences in the Capital Structure of leading Indian companies in terms of market capitalization. Comparisons in the capital structure of 15 industrial groups namely Pharmaceutical, Non-Metallic Mineral Products, Power, Electric Equipment, Automotive, Chemical, Construction, Information Technology, Food-Beverages-Tobacco-Alcohol, Consumer Goods, Textile, Service, Metal, Retail/Wholesale and Others identified from 333 companies are made using three gearing ratios i.e. Total Debt to Net Worth ratio (TDNW), Long Term Debt to Net Worth ratio (LTDNW), Short Term Debt to Net Worth ratio (STDNW). One way ANOVA and Post hoc tests are employed for statistical analysis. Construction and Textile industries have a higher level of debt in their capital structure. However, Information Technology and Service industries are identified as least levered ones. Overall, the finding indicates IT and Service industry to be significantly different from other industry groups in case of all the debt ratios.

IMPLEMENTING VALUE ENGINEERING FOR STRUCTURAL WORKS DURING THE DESIGN PHASE FOR A RESIDENTIAL PROJECT

To cut costs without sacrificing quality or performance, value engineering has been found to be a good way to do it. Value engineering is used a lot in construction projects as a way to make decisions about what to do. Value engineering has a lot of benefits and can be used in a lot of different ways, which is why more and more businesses are including the idea of value engineering in their projects. It is well accepted that value engineering should be undertaken early in the life of a project (feasibility and planning phases) in order to maximize the benefits. Some projects fail to address the notion of value engineering and, as a result, subsequently seek to achieve the project specifications in terms of cost and time but fail to do so. The purpose of this work is to shed light on how to incorporate value engineering into the structural component/item of work of a building construction project by examining a case study of an ongoing building construction project in Kolkata during the design phase and evaluating the cost savings that can be realized by substituting alternative items or components without sacrificing quality or performance. KEYWORDS: Value engineering; Construction Project; Design Phase; Structural work; Pareto Law; Cost to worth ratio; Time and cost.

Corporate Nationality and Capital Structure Decisions - Evidence from India

This paper examines the Capital Structure of companies classified based on nationality over two-time phases as 2008-09 to 2012-13 and 2013-14 to 2017-18 covering ten years. For each category of companies, the mean of three gearing ratios i.e., Total debt to Net worth ratio, Long term debt to Net worth ratio and Short term debt to Net worth ratio is assessed. The analysis is based on a randomized sample of 206 companies obtained from BT-500 (December, 2017) which are subcategorized on the basis of nationality as Indian Domestic Companies, Indian MNCs operating abroad and Foreign MNCs operating in India. The findings reveal that Domestic Indian companies are more inclined towards debt relative to Indian MNCs and Foreign MNCs over both the time phases. This signifies the importance of the nationality factor which must be contemplated while planning Capital Structure. Statistically significant differences in total and long-term debt ratios of Domestic Indian Companies and Indian MNCs between Phase I and Phase II highlight the significance of the time factor which should also be kept in mind before taking leverage decisions. Overall, the paper suggests the corporations to have beady eyes on the institutional environment of geographical territories in which they operate as well as the time variations before planning their debt structure. The disparities in the debt ratios across nationality and time warrant an empirical investigation of the causes behind them, so examining the determinants of Capital Structure of DCs and MNCs would be an interesting area of research in the future.

Study on Multidimensionsal Aspects of Profitability: Evidence from Larsen & Toubro Ltd

The term profitability represents to the ability of an organization to obtain sufficient profit. Profitability is connected to the efficiency of an organization to maximize the profit and wealth at reasonable rate. It is relative measure of the success of the organization in terms of the effective utilization of resources. Scientific study of current trade provides a platform to forecast the possible future trends of the profitability strategic managerial decisions like expansion of the business, rising of additional finance, issue related to bonus and dividend directly connected with profit. To analyze the profitability, the researcher used profitability ratios to determine the earning by considering the variables like EBIT, Gross contribution, Net sales, operating cash flow, ROA, Capital employed, Shareholders equity are considered in the study. An appropriate statistical tools like regression analysis has been employed to measure the relationship between profitability and productivity, which predict the growth of an organization in monetary value during the study period. The researcher made an attempt to measure the profitability of L&T a leading private infrastructure company in India. The researcher made an attempt to measure the profitability of L&T a leading private infrastructure company in India. The study has analyzed the profitability of L&T. Profit being a crucial measure to determine the performance in profitability, internal determinants of the firms, earning power has been ascertained in the study by applying a multiple regression model with EBIT as dependent variable and internal data inputs has independent variable s namely operating profit margin ratio, net profit margin ratio, return on capital employed, return on net worth ratio, return on total assets, operating cash flow to total asset, EBIT to total tangible asset, profit after tax to total tangible assets, EBIT to total assets, retained cash flow to capital employed, EBIT to capital employed, PAT to tangible portion of shareholders equity, interest coverage ratio.

Household Wealth Trends in the United States, 1962 to 2019: Median Wealth Rebounds... But Not Enough

Median household wealth shot up by 21.2 percent in real terms between 2016 and 2019, as asset prices continued to rebound. However, 2007 still remains the watershed year, and median wealth was down 20.4 percent relative to 2007, though mean wealth more than fully recovered. There was a modest remission in wealth inequality, with the share of the top one percent down by 1.4 percentage points, that of the top 20 percent down by 1.0 percentage points, the Gini coefficient down by 0.008, and the mean wealth of the top one percent also down by 1.9 percent. The homeownership rate finally rebounded a bit, by 1.2 percentage points, to 64.9 percent. The stock ownership rate advanced by 0.4 percentage points to 49.6 percent, though still down from its 2001 peak. Though the mean debt of the middle class rose by 10.7 percent in real terms, the debt-income and debt-net worth ratios remained largely unchanged. The black-white gap in mean net worth remained unchanged, as did the Hispanic-white wealth gap. The wealth of households under age 35 continued to deteriorate in both absolute and relative terms between 2016 and 2019.

Capital Structure Trends in a Cement Engineering Company

Capital structure means the mix of equity and debt. The Finance manger is required to bring balance between different sources of financial resources for maximising return in any company by not altering risk mix. A best capital structure is required to optimize the owner’s Profits in any company. In this research paper, effort is put to examine the capital structure Trends in a Cement Engineering Company namely The Ramco Cements Limited. The Ramco Cements Limited is a main company in Ramco Group. This is a most popular group in Southern India. It is mainly located in Chennai. The important product of this organization is Portland cement. The cement production capacity is 16.45 million tons per year. This Company has a yearly turnover of Rupees 5174.71 Crores as per 2018-19 Accounts. The gross assets of the company are Rupees 8108.21 Crores. In this research paper capital structure Trends in the company for a period of 10 years are examined. Different kinds of Leverages are examined. Debt- Equity (D-E) Ratio, Proprietary Ratio(PR), Solvency Ratio(SR), Fixed Assets(FA) to Net worth(NW) Ratio, Fixed Assets Ratio (FAR), Current Assets(CA) to Proprietary Funds (PF) Ratio and Interest Coverage Ratio(ICR) are prepared for ten years period. Hypotheses’ testing was done through Chi-square. Outcome of the present research will be useful for finding weaknesses in capital structure of the company.

Capital Structure Decisions and Financial Viability of Firms Quoted on the Premium Board Segment of the Nigeria Stock Exchange

We investigate how corporate capital structure decisions affect financial viability of listed companies on the Premium Board segment of the Nigerian stock market 2010 – 2018. The objectives were to ascertain (1) the extent the proportion of debt in relation to equity influence return on assets, (2) determine the effect of non-current liabilities to net worth ratio on return on assets and (3) to examine the relationship between total liabilities to total assets and return on assets. “Panel data analysis” was used to analyze the data. The “Fixed effects model” as well as the “Random effects model” were estimated. The “Haussmann test” suggested the Fixed effects model for interpretation of results. The empirical analysis revealed mixed relationships between capital structure decisions and financial viability of firms. It is recommended that quoted Companies on the Premium Board should target achieving optimal combination of debt and equity to enhance returns on capital employed as well as sustain their Long-term debt profile to continue to improve the level of return on assets. Finally, listed companies on Premium Board should re-examine their working capital policy to minimize the negative effect of short-term debt on return on total assets; given that long-term liability to total assets ratio exhibit a positive and significant association with return on assets while total liability (current plus non-current) to total assets ratio suggests a negative and significant effect on return on assets.

Annuities and Their Derivatives: The Recent Canadian Experience

This chapter surveys recent developments within the Canadian “income annuity” marketplace. We start by computing the Money’s Worth Ratio (MWR) using a unique dataset which includes a decade of Canadian annuity payouts. We then move-on to discuss the Guaranteed Lifetime Withdrawal Benefit (GLWB) product which has recently become available in Canada. This important innovation is extremely popular and shares many characteristics with a conventional income annuity. Finally, we conclude with thoughts on the optimal product allocation within the context of the Canadian retirement portfolio.

The Private Life Annuity Market in Germany: Products and Money’s Worth Ratios

We explore the workings of the German private annuity market to evaluate whether annuities are delivering an adequate value for money by measuring their money’s worth. We examine key features of the German private annuity market and give a comprehensive description of the main product groups, taking into consideration the statutory obligation to distribute substantial parts of insurer’s annual profits to the annuitant. Relying on a large dataset covering about 90% of the German market, we calculate money’s worth ratios for private payout annuities and trace long-term developments.

ANALISA PERBANDINGAN LAPORAN KEUANGAN DAN RASIO KEUANGAN SEBAGAI ALAT UKUR KINERJA KEUANGAN PADA KOPERASI KARYAWAN SUCOFINDO (KOPERASI SUCOFINDO JAYA) TAHUN 2009 – 2011

This study aims to determine the financial position and financial performance Cooperative Sucofindo Jaya (KOPSUCOFINDO JAYA) from fiscal year 2009-2011 through a comparative analysis / comparisons and ratio analysis. From the research, the authors obtained a picture that results of the financial position and financial performance of KOPSUCOFINDO JAYA as follows: (1) To Horizontal Analysis of the Balance Sheet shows the overall unfavorable developments as the rise of short-term debt experienced a greater percentage increase than the increase in current assets (2) For Horizontal Analysis of the SHU, SHU in 2010 an increase of 125.38% compared to 2009 and in 2011 increased by 282.47% compared to 2009, but this increase was not followed by a reduction in the burden of cost of goods, especially business and this increase was obtained from the contribution percentage increase in other income. (3) For Vertical Analysis of the Balance Sheet shows that in terms of assets, current assets are assets that make up the largest component but also cause considerable investment value embedded in current assets and also showed asset turnover, receivables turnover and working capital is very low under 1 times. (4) For the SHU Vertical analysis shows that income JAYA KOPSUCOFINDO more than 85% absorbed in the Cost of Goods. (5) For liquidity analysis showed that highly liquid KOPSUCOFINDO JAYA obtain an average value above 400%. (6) For solvency analysis shows that the performance is not good / not solvable because the results of the analysis LITA average of above 95%, Total Debt to Equity Ratio in the top 2.000%, and Net Worth Debt Ratio to average below 4%. (7) For activity ratios indicate that the performance is not good for Turnover of Assets value of 1 times. (8) For the rentability analysis KOPSUCOFINDO JAYA show results for ROA of 0.86% (2009), 1.31% (2010), 1.18% (2011), ROE in 2009 is 14.81%, 26.43% in 2010 and 2011 amounted to 31.11%, for the ROI of 0.56% in 2009, in 2010 was 0.96% and by 0.93% in 2011. (9) For the analysis of profitability, for the analysis of GPM in 2009 amounted to 1.49%, in 2010 of 2.31% and 3.92% in 2011. As for the analysis of NPM in 2009 amounted to 0.97%, in 2010 by 1.70% and by 3.10% in 2011. Keywords: Cooperative Financial Performance, horizontal analysis, vertical analysis, Analysis of Liquidity, Solvency Analysis, Activity Analysis, Profitability Analysis, profitability analysis

Multi-dimensional life cycle assessment of decentralised energy storage systems

The intermittent nature of renewable energy sources like solar and wind energy stimulates the use of centralised and decentralised energy storage systems. The sustainability of lead acid, lithium-ion and concentration gradient flow batteries, compressed air and pumped hydro energy storage (PHES) systems is investigated by conducting a multi-dimensional life cycle assessment. The environmental, economic and exergetic sustainability are assessed by calculating ReCiPe 2016 indicators, the present worth ratio and the Total Cumulative Exergy Loss, respectively. The multi-dimensional sustainability assessment did not lead to one preferred system. The PHES causes the lowest damage to human health, ecosystem diversity and resource availability and results in the lowest global warming potential. The concentration gradient flow battery system named BBS is preferred from an economic viewpoint, while the PHES is second-best. The lithium-ion battery system causes the lowest exergy losses, followed by the PHES. It is recommended to pay attention to the exergetic sustainability of technological systems as exergy losses are independent of environmental models, weighting factors, market prices, subsidies etc. More research into the specifications of the energy storage systems is needed to be able to draw firm conclusions with regard to which system is preferred.

Performance of Kotak Mahindra Bank after Merger

The paper is an attempt to analyse the performance of Kotak Mahindra bank for pre and post-period. The approach is Based on comparison of ratios in pre and post period. The period taken for pre-merger is two years and post-merger is three years. Performance is evaluated on the basis of, current ratio, quick ratio, Credit Deposit Ratio, debt equity ratio, Investment Deposit Ratio, Cash Deposit Ratio, Financial Charges Coverage, Capital Adequacy Ratio, Net Profit Margin Ratio, Return on Long Term Fund Ratio, Return on Net Worth Ratio, Operating margin Ratio, Gross profit margin Ratio, Adjusted cash margin Ratio for pre and post merger period. The final conclusion is that Merger is a useful strategy for Banks to expand their operations, serve larger customer base, increases profitability, liquidity and efficiency but the overall growth and financial illness of the bank can't be solved from mergers.