Financial Trends Paper Essay Example | Topics and Well Written Essays - 500 words

Financial Trends Paper - Essay ExampleAlso if we were to analyze the debt/equity ratios the decrease leverage of the company has correspondingly increase not only its positivity but also increase return on assets and increase in the net profit margin (money central, ten year summary).The obligate I am summarizing was published in Economist The ones that get away Accounts are increasingly to a greater extent art than science. The author introduces the argument that although net profits of Amazon, online retailer, had fallen substantially while that of Sprint, telecom, had increased significantly share prices rose for both companies (Economist, 00130613). Author quotes Enron and WorldCom and stresses that people meet become shy of profitability figures as these figures tend to be malleable (Economist, 00130613). There is a further argument that these errors start to weirdie in because companies are increasingly making use of estimates in their financial statements. The accrual meth od of accountancy where expenses and revenues are entered into accounts when incurred (Economist, 00130613) have made the issue difficult and to compound it fair value accounting practices have introduced their own difficulties.