Compare and contrast the lenders financial ratios and for what purpose they use the ratios

Q: How is the the financial ratio analyses very useful?

A: Ratio analysis is a method of relative measure between two numericals for gaining knowledge about a…

Q: Give an example of a debt ratio?

A: Companies’ capital structure may contain debt and equity. It is not necessary for any company to…

Q: What are the different ways to calculate the Financial ratios?

A: Financial ratios:   Financial ratios are the metrics used to evaluate the capabilities,…

Q: Users of Financial Statement. how debt is helpful

A: There are three major financial statement of a company. These are profit and loss statement, balance…

Q: Define Debt-to-assets ratio

A: Debt-asset ratio is a measure that tells how much assets of the firm are financed with the debt.…

Q: Explain debt to equity ratio and how to calculate.

A:

Q: Discuss and explain how using debt ratios applies to your personal finances

A: Personal finance refers to the process in which financial activities are planned and managed like…

Q: What is Ration Analysis in Financial Analysis?

A: Financial analysis is done for financial statements such as balance sheet for the period ended,…

Q: 1. What is and describe the “five question approach” to using financial ratios?

A: The "five question approach" clusters financial ratios around important questions that may be…

Q: will bills  payable given to creditors affect the current ratio?

A: Current ratio is the ratio of Current Assets to Current Liabilities.  Current ratio = Current…

Q: Why do we use an after-tax figure for the cost of debt but not for the cost of equity? Explain your…

A: Capital of a company is made from two main sources – debt and equity.Debt consists of liabilities…

Q: Define Debt-to-equity ratio

A: Debt to equity ratio is an important ratio which is used by the companies in order to determine the…

Q: Debt-equity ratio is a sub-part of Select one: a. Liquidity ratio b. Solvency ratio c. Profitability…

A: EXPLNANTION:- The debt-equity ratio is an indicator of the lenders' and stockholders' or owners'…

Q: Who uses financial ratios and how the ratios are used?

A: Financial ratios are the important tool for measuring company’s performance in terms of their profit…

Q: What are the financial ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: What is removed from current assets in order to calculate the Quick Ratio? marketable securities…

A: Quick ratio = (Total current Assets - Inventory) / Total current liabilities

Q: CHAPTER 2 ASSIGNMENT Your client is having trouble figuring out where all her money goes each month.…

A: "In this chapter, we'll take a look at a client's financial situation and help them figure out where…

Q: Summarize some of the Key Financial Ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: List and explain the types of financial ratios in lending.

A: Financial Ratios: Financial ratios are the ratios calculated on the basis of financial statements…

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: How do we account for compound financial instruments?

A: These are one form of financial instruments that comprises equity as well as debt portion.…

Q: When is debt to asset ratio important when raising money

A: Debt to asset ratio is one of the important ratios that we use in finance. This is essentially a…

Q: What is “benchmarking” and how is it used in financial ratio analysis? Provide an example.

A: Benchmarking is a process used in financial ratio analysis to compare a company's performance and…

Q: What are the categories of the most Common Financial Ratios:

A: Lets understand the basics. Financial ratios helps management to understand the performance of the…

Q: Explain the importance of financial ratio analysis, including the importance or relevance of…

A: Its a way to conduct a company's financial health check.  Suppose you are the investor and you are…

Q: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

Q: Explains the effect of debt on profit margin and return on assets (ROA).

A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…

Q: Compute and interpretfinancial ratios that would beuseful to a long-term creditor.

A:

Q: Of the three financial ratios, which do you think is the most important financial ratio? Why?

A: A financial ratio is used to calculate the financial position as compared to the other firms in the…

Q: Income statements prepared under IFRS usually report an item titled finance costs. What do finance…

A: International Financial Reporting Standards: These are defined as the set of accounting rules and…

Q: What is the purpose of calculating a set of financial ratios?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: are designed to indicate the potential default risk that lenders are undertaking when they grant a…

A: Solvency ratios are key financial indicators that evaluate a company's capacity to meet its…

Q: The debt ratio may be measured in many different forms. what are they?

A: The debt ratio is a money related proportion that gauges the degree of an organization's influence.…

Q: Provie The Correct Answer with calculation

A: 1. Contribution Margin Ratio:   The contribution margin ratio is a measure of the profitability of a…

Q: What is the significance of credit/debt ratings

A: Credit Ratings: Credit Rating is an estimate of the borrower (be it a person, organization, or…