Ratio analysis assists in identifying a company’s weaknesses. Select one: True False
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Ratio analysis assists in identifying a company’s weaknesses.
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- Ratio analysis assists in identifying a company’s strengths. Select one: True False“A customer-profitability profile highlights those customers a company should drop to improve profitability.” Do you agree? Explain.Sargassum Caribbean Incorporated Balance Sheet as at December 31, 2020 Assets Liabilities Current Assets: Current Liabilities: Cash Accounts Payable 600,000 300,000 200,000 400,000 Notes Payable 900,000 1,500,000 Total Current Liabilities Accounts Receivable Inventory Total Current Assets 900,000 Fixed Assets: Long-Term Liabilities: Property, Plant & Equipment Less: Accumulated Depreciation 1,200,000 Long-Term Debt 1,000,000 Total Long Term Liabilities 200,000 300,000 300,000 Net Fixed Assets Owners' Equity: Common Stock ($1 Par) Capital Surplus Retained Earnings Total Owners' Equity 100,000 300,000 100,000 500,000 1,700,000 Total Liabilities & Owners' Equity Total Assets 1,700,000 Sargassum Caribbean Incorporated Income Statement for Year Ending December 31, 2020 Sales Less: Cost of Goods Sold Less: Administrative Expenses Less Depreciation Earnings Before Interest and 2,500,000 800,000 100,000 104,000 1,496,000 Тахes Less: Interest Expense Taxable Income 20.000 1,476,000 663,000…
- Which of the following is the indicator of the rate at which company is earning profit? Select one: a. Margin of safety b. All options are correct c. Contribution margin d. Profit volume ratioSolve the below problem with the help of required ratio formulas and comment on the company’s position.Answer the following. Why performance ratio in a business or company is important?? *Purpose of performance ratio? *Advantage? *Disadvantage?
- Ratio analyses may not be helpful in explaining the performance of the company. Explain the limitations of using ratio analyses in a company. Relevant examples or illustrations should be given.Required: 1. The company's margin of safety in unite is closest to? 2. The company's degree of operating leverage is closest to?Which of the following is not included in the Dupont framework? a. a measure of profitability c. a measure of leverage b. a measure of efficiency d. a measure of market share
- a. What information does a comparison of the current ratio and acid test ratio provide? b. Is the company using leverage to its advantage? Explain. c. What other observations can be made comparing Global Technologys ratios to the following industry norms:Financial ratio analysis is a widely used tool for assessing the "health" of an organization and identifying any specific areas of weakness within the operation that may require management attention. Show us the formula for the ratio and explain in plain terms what the ratio tells us about the company's performance or operational efficiency. Also be sure to indicate whether it's better for the ratio's calculated result to be a higher or lower value.A) What is the concept of “competitive benchmarking? A technique for directly comparing technology and cost-effectiveness of products. A measure of market share in terms of volume sales. A method for assessing a company’s total service quality based on customer perceptions. A strategy to measure the financial strength of competitors in the market.
