Profitability ratios include all of the following EXCEPT a.current ratio. b.asset turnover. c.return on total assets. d.price-earnings ratio.
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- Which of the following ratios is used to measure a firms profitability? a. Liabilities Ă· Equity c. Sales Ă· Assets b. Assets Ă· Equity d. Net Income Ă· Net SalesDefine each of the following terms: Liquidity ratios: current ratio; quick, or acid test, ratio Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; EBITDA coverage ratio Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; return on total assets (ROA); return on common equity (ROE) Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/book (M/B) ratio; book value per share Trend analysis; comparative ratio analysis; benchmarking DuPont equation; window dressing; seasonal effects on ratiosWhich of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection Period
- Compute the following ratio analysis: Return on Equity Return on Assets Gross Profit Margin Write your interpretation after the computation.Which of the following is a solvency ratio? a. Times interest earned. b. Inventory turnover ratio. c. Profit margin. d. Price-earnings ratio.Define these. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
- Financial Statement Analysis Compute for Profitability Ratio with Substantial Analysis: a. Gross Profit Margin b. Profit Margin c. Return on Total Assets d. Return on Equityb. Compute the following Ratios: iv. Average Collection period v. Profit Margin vi. Debt to Total Assets vii. Return on Asset viii. Times Interest Earned Explain to the Manager, what the different classes of ratios measure and identify the bases of comparison on financial information. C.Present formulas and examples of the following financial ratios (Financial ratios)a. gross marginb. profit margin on salesc. return on equity (ROE)
- Calculate the following ratios: 1. Return on Capital Employed (ROCE) 2. Current Ratio 3. Gearing Ratio 4. Price/Earnings (P/E) RatioWhich of the following is a Profitability Ratio a. Proprietary Ratio b. Debt-Equity Ratio c. Earnings Per Share d. Fixed Asset RatioPerform the calculation for each ratio, and provide an explanation of the result. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover