Describe the use of profitability index.

Q: Define each of the following terms:g. Market Value Added; Economic Value Added

A: We can define the terms as follows:

Q: What is the profitability index? When is it used?

A: Capital investment analysis: Capital investment analysis is the process by which management plans,…

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: What are the Profit margins?

A: Answer: Profit margin represents a product, company or sector profitability. It nothing but the…

Q: How to correctly find the operating profit? Show an example please.

A: The calculation of operating profit is an important aspect of understanding the financial position…

Q: why it is important to use profitability ratios

A: Ratio analysis is an evaluation tool used by the businesses with a view to obtain knowledge about…

Q: Define the term profitability index?

A:

Q: COMPUTE FOR THE LIQUIDITY, SOLVENCY, EFFICIENCY AND PROFITABILITY USING THE DIFFERENT FORMULAS IN…

A:

Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…

A: IFRS is principal based.

Q: PROFITABILITY RATIOS

A: Gross profit margin is stable for initial year but tends to reduce in future. Return on sales…

Q: How to calculate profitability analysis?

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: How to calculate the Profitability index?

A: Profitability Index: It is a measure used in capital budgeting of the project's or investment's…

Q: What are the three main profitability ratios, and howis each calculated?

A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Analyze the profitability graph that illustrates the factors/accounts that are needed to calculate…

A: The profitability graph: The profitability graph depicts all the inputs that are needed to compute…

Q: Define the term profit oriented.

A: Profit Oriented Company: Profit oriented company are refer as the company which main aim is to earn…

Q: Explain the difference between liquidity, solvency and profitability analysis.

A: Liquidity analysis is the analysis by using ratios to determine the ability of company in repaying…

Q: What is the relationship between profitability and efficiency, liquidity, investment, and efficiency…

A: (1) Financial Ratios will express financial Quantity concerning another financial ratio. (2) These…

Q: Explain profit-and-loss statement?

A: For financial reporting, there are three major financial statements which a business entity is…

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: How to prepare SOFP AND INCOME STATEMENT for this question?

A: Financial statements are the records of the economic activities performed by the business to earn…

Q: ancial health of the given data b

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: Define current operation income?

A: Current operation income otherwise called as operating income.Operating Income: Operating income is…

Q: Explain profitability index

A: Profitability index is a financial tool which tells us whether an investment should be accepted or…

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Times interest earned ratio is used to measure ability of the company to pay it's debt payment.…

Q: The effects of financial choices can be understood by performing which of these? Check two. O Micro…

A: Decision making is the most important function of management. But when it comes to financial…

Q: What is Profitability analysis?

A: Profitability analysis is an important measure for the business to analyze the company's ability in…

Q: Find the coverage ratio and profitability ratio

A: Ratio analysis is used for measuring the financial efficiency, profitability and revenue of an…

Q: how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to…

A: Financial statements: Financial statements are the summary of transactions presented in the form of…

Q: What are the different profitability ratios?

A: Profitability ratios are the measure which is used to depict the profitability position of the…

Q: Use the attached information to complete the ratio analysis.  The Ratio Analysis is for…

A: Ratio analysis is useful to measure the financial performance of the company and helpful to make…

Q: What will be Measures of Investment Performance Using Ratios?

A: It is always essential to evaluate the performance of the investments to decide whether the…

Q: i) Profitability index

A: The profitability index (PI) is one of the capital budgeting tools that help to evaluate whether the…

Q: What is Pro forma (or projected) profit-and-loss statement?

A: Pro Forma financial  Statement (also called as pro forma profit and loss) means that however the…

Q: Perform a profitability analysis

A: Profit is very important element of the business. Every business wants to have maximum profit in its…

Q: What is the relationship between NPV and profitability index (PI)?

A: The concept of net present value is used to decide whether to invest in an investment or not. It is…

Q: Define the terms market value added (MVA) and economic value added (EVA).

A: The concept of economic value added was developed by Stern Stewart & co & is also known as…

Q: In what way are profitability and efficiency related? How are profitability and liquidity related

A: The question explains about profitability and efficiency related and profitability and liquidity…

Q: Do you use an income-statement strategy?

A: The income statement is one of three financial statements of an entity.(The others are the balance…

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Liquidity:   Liquidity is what and how quickly company can turn assets into cash.   Efficiency:…

Q: Describe the common profitability measures.

A: Common profitability measures include profitability ratios such as ROE, ROA, profit margin etc They…

Q: What is the Profitability Index?

A: Capital budgeting is the technique of evaluating a project which requires an initial capital…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.