Accounting ratio analysis for Hysan Development Company Limited Essay

Accounting ratio digest for Hysan Development Company Limited - Essay ExampleThe company has three segments in operating as such in the industry. First, is has its Office segment, which is in charge of leasing of federal agency space and related facilities to various customers from office users. Second, it has its Retail segment, which takes charge of the leasing of space and related facilities, this time to a wide range of retail of retail and leisure operators. Third, it has its Residential segment, which takes charge of the leasing of luxury residential properties and related facilities. The company has continued to expand all over the years and as of December 31, 2012, its investment property portfolio has r severallyed an approximate level of more than 4 one million million gross square feet of office, retail and residential space in Hong Kong. The Companys subsidiaries as of 2012 included HD Treasury Limited, Admmore investments Limited, Hysan chinaware Holdings Limited, H ysan Corporate Services Limited, Hysan (MTN) Limited and Hysan Leasing Company, among others (Reuters, 2014a).Profits are created from the surplus of revenues over expenses. This would require a stylus to gauge revenues and expenses which are extracted from the financial statements of the companies under study. Various categories of expenses according to functions, get deducted from the revenues for purposes of computing profit or income. First is the direct cost or called cost of sales or revenues is deducted first from revenues to arrive at gross profit. From gross profit, operating income pass on be derived later deducting further selling and administrative expenses will be deducted to arrive at operating income. From the operating income, net income determination will follow after non-operating incomes or expenses are added/deducted accordingly from the operating income (Johnson, et al, 2003). After producing the various categories of income --- gross profit, operating income and net income, each result