4) Total Debt Ratio: [TA-TE/TA] Question Blank 4 of 20 5) Debt-Equity Ratio: [Total Debt/Total Equity] Question Blank 5 of 20 6) Equity Multiplier: [Total Assets/Total Equity] or [1+Debt-Equity Ratio] Question Blank 6 of 20 7) Times Interest Earned: [EBIT/Interest] Question Blank 7 of 20 8) Cash Coverage Ratio: [(EBIT + Depreciation)/Interest] Question Blank 8 of 20 9) Inventory Turnover: [COGS/Inventory] Question Blank 9 of 20 Days’ Sales in Inventory: [365/Inventory Turnover] Question Blank 10 of 20 Receivables Turnover: [Sales/Accounts Receivable] Question Blank 11 of 20 Days Sales in Receivable: [365/Receivable Turnover] Question Blank 12 of 20 Total Asset Turnover: [Sales/TA] Question Blank 13 of 20 Profit Margin: [Net Income/Sales] Question Blank 14 of 20 Return on Assets (ROA): [Net income/TA] Question Blank 15 of 20 Return on Equity (ROE): [Net Income/TE] Question Blank 16 of 20 Earnings Per Share (EPS): [Net Income/Shares Outstanding] (Shares Outstanding = 33) Question Blank 17 of 20 Price to Earnings (PE): [Price Per Share (PPS) / EPS] (Price Per Share = 88) Question Blank 18 of 20 Price-Sales Ratio: [PPS / Sales Per Share] Question Blank 19 of 20 (Sales Per Share = Total Sales/Shares Outstanding) Market to Book: [PPS / (TE / Shares)] Question Blank 20 of 20
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
4) Total Debt Ratio: [TA-TE/TA] Question Blank 4 of 20
5) Debt-Equity Ratio: [Total Debt/Total Equity] Question Blank 5 of 20
6) Equity Multiplier: [Total Assets/Total Equity] or [1+Debt-Equity Ratio] Question Blank 6 of 20
7) Times Interest Earned: [EBIT/Interest] Question Blank 7 of 20
8) Cash Coverage Ratio: [(EBIT + Depreciation)/Interest] Question Blank 8 of 20
9) Inventory Turnover: [COGS/Inventory] Question Blank 9 of 20
Days’ Sales in Inventory: [365/Inventory Turnover] Question Blank 10 of 20
Receivables Turnover: [Sales/Accounts Receivable] Question Blank 11 of 20
Days Sales in Receivable: [365/Receivable Turnover] Question Blank 12 of 20
Total Asset Turnover: [Sales/TA] Question Blank 13 of 20
Profit Margin: [Net Income/Sales] Question Blank 14 of 20
Earnings Per Share (EPS): [Net Income/Shares Outstanding] (Shares Outstanding = 33) Question Blank 17 of 20
Price to Earnings (PE): [Price Per Share (PPS) / EPS] (Price Per Share = 88) Question Blank 18 of 20
Price-Sales Ratio: [PPS / Sales Per Share] Question Blank 19 of 20
(Sales Per Share = Total Sales/Shares Outstanding)
Market to Book: [PPS / (TE / Shares)] Question Blank 20 of 20
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