Q: What are important profitability ratios?
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: Define price earnings ratio.
A: P/E Ratio: Price Earnings ratio is the ratio of company’s current share price to the company’s…
Q: financial variables that affect the price-earning ratio
A: The price-to-Earning ratio is derived by dividing the Market Price of Share by Earning Per Share.…
Q: Explain profit margin
A: Profit margin is one of the benefits proportions that's generally utilized to assess the level to…
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: What type of analysis uses ratio analysis to evaluate equities? A) Technical analysis. B)…
A: Fundamental analysis (FA): It is a technique for estimating a security's intrinsic value by looking…
Q: PROFITABILITY RATIOS
A: Gross profit margin is stable for initial year but tends to reduce in future. Return on sales…
Q: Explain price/cash flow ratio
A: Answer: Price to cash flow is determined through the division of price per share by cash flow per…
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: Define the term profit oriented.
A: Profit Oriented Company: Profit oriented company are refer as the company which main aim is to earn…
Q: Describe following:* Market approach* Income approach* Cost approach
A: Market Approach: Market approach is a method used to assess the value of an asset depending on the…
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: Define the term profit Margin on Sales?
A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…
Q: Discuss each group of ratio’s relationship to the balance sheet and income statement. Liquidity…
A: Ratio Analysis is a quantitative tool or method used for gaining insights into a company's…
Q: Provide an Market Performance Ratio analysis based on P/E, ROE and D/E.
A: P/E ratio = Share Price/Earnings per share ROE = Net Income/Average shareholder's equity D/E ratio =…
Q: What is operating profitability ratio (OP)?
A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…
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: what is profitability ratio?
A: Financial ratios provide information related to the company. There are various types of ratios like…
Q: Distinguish between gross profit margin, operating profit margin, and net profitmargin and provide…
A: To distinguish between the gross profit margin, operating profit margin, and net profitmargin and…
Q: Explain profit-and-loss statement?
A: For financial reporting, there are three major financial statements which a business entity is…
Q: PROFITABILITY Solution and answer Interpretation Gross profit margin Operating profit margin Net…
A: Solution:- 1)Calculation of Gross profit margin as follows under:- Formula as follows under:-…
Q: How is the profit margin on sales calculated?
A: Profit margin on sale: it's categorized under profitability ratio , generally this ratio is used to…
Q: What would be the sales value or turnover corresponding to the threshold of profitability
A: Sales turnover: It is the company's total amount of services / products sold over a given period of…
Q: Trend analysis of net profit margin and leverage ratios help in identtyi
A: There are various types of risk a businessman needs to evaluate before starting up the business. The…
Q: What is operating profit margin?
A: The operating profit is the profit earned during the year after deducting all the operating expenses…
Q: Explain profitability index
A: Profitability index is a financial tool which tells us whether an investment should be accepted or…
Q: rite a short note on "Profitability Ratios"
A: Profitability ratio shows the ability and efficiency of the firm and show how much are the expenses…
Q: Explain the calculation procedures for and significance of return on sales.
A: The return on sales (ROS) ratio is a statistic for evaluating a business's operational efficiency.…
Q: Explain profit margin on sales
A: Profit margin on sales is calculated by using the following formula: Gross Profit/Sales Revenue*100…
Q: What are the different profitability ratios?
A: Profitability ratios are the measure which is used to depict the profitability position of the…
Q: Trend analysis of net profit margin and leverage ratios help in identifying
A: This ratio is used to measure the operational efficiency of the management. It shows whether 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: How is Profit Margin calculated and what does It measure?
A: Note: Since you have asked multiple questions, we will solve the first question. To get the…
Q: profit margin ratio
A: Profit margin ratio = Net income * 100/Net sales
Q: Perform a profitability analysis
A: Profit is very important element of the business. Every business wants to have maximum profit in its…
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: Describe the use of profitability index.
A: Capital investment analysis: Capital investment analysis is the process by which management…
Q: What do the Profitability ratios show?
A: Profitability Ratio Profitability Ratio is basically a tool to assess a company's ability to…
Q: Compute the gross margin ratio and explain its use to assess profitability.
A: Gross margin ratio is the measure of profitability of the business and it depicts a ratio between…
Q: Define Selling profit.
A: Net income: Net income is the excess amount of revenue that arises after deducting all the expenses…
Q: Define Profit margin on sales.
A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…
Q: Operating leverage measures the: Change in profit when sales changes. Change in Contibution when…
A: Solution: Operating leverage = Contribution margin / Net income Therefore Operating leverage…
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…
Explain profitability ratios
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