Look at the firm's liquidity ratios, specifically the current and quick ratios. Considering the given industry average, what does this suggest about the liquidity of the company? Think about what type of debt these ratios consider.
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- What do the Debt management ratios reveal?The ratio group most likely to be used to indicate a firm's ability to meet short-term financial obligations would be ____. a. activity ratios b. financial leverage ratios c. profitability ratios d. liquidity ratiosWhich of the following is the correct explanation for the purpose of financial risk ratios? Select one: O a. They show the relative proportion of debt items with respect to shareholders' equity or total capital. b. They show the profitability of the company over a specific period of time. c. They show the probability of whether the company will face problems in operations. O d. They show the relative levels of liquid assets of the company.
- Discuss how do you analyze a company's performance using financial ratios? Which ratios are most important to look at for a creditor? Which ratios are most important to look at for a sharehold er?An investor worried about a company’s long-term solvency would most likely examine its:C . debt-to-equity ratioIn order to assess a company’s ability to fulfi ll its long-term obligations, an analyst wouldmost likely examine:B . liquidity ratios.
- Which of the following is the correct explanation for the purpose of financial risk ratios? Select one: a. They show the relative levels of liquid assets of the company. b. They show the relative proportion of debt items with respect to shareholders' equity or total capital. c. They show the profitability of the company over a specific period of time. d. They show the probability of whether the company will face problems in operations.Briefly describe the ratios that can be used to evaluate a company’s ability to pay long-term debt.Help me please
- Which of the following is the correct explanation for the purpose of financial risk ratios? Select one: a. They show the probability of whether the company will face problems in operations. b. They show the profitability of the company over a specific period of time. c. They show the relative proportion of debt items with respect to shareholders' equity or total capital. d. They show the relative levels of liquid assets of the company. According to the information given in the table below, which of the following is Raw materials consumed? Opening Stock Raw Materials 32300 Purchases 128800 Freight in 4950 Sales return 2350 Wages paid to labor 78900 Closing Stock Raw Materials 28400 Select one: a. 135300 b. 149900 c. 143700 d. 137650 d. Current ratioWhat are the siginificance of financial ratios (i.e. current ratio; DSO; TATO; profit margin; ROA; ROI)? How do they help us interpert financial data? What are the differences between ratios (i.e. profiability; liquidity; leverage)? What information do they provide for us?How do we use debt to equity ratio to evaluate business performance?
