What are the importance of the following financial ratios? Price to earnings ratio. Earnings per share. Return on equity ratio.

Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…

A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…

Q: which of the following ratios indicate the proportion of earnings paid as dividends .a dividends…

A: dividend pay out formula: dividend payout =dividendnet income

Q: Briefly describe the ratios that can be used to evaluate a company’s profitability.

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Q: How to prepare report on financial ratios

A: The ledger accounts will be prepared taking the journal as the source document. The ledger accounts…

Q: what is means activity ratio, liquidity ratio, and Profitability Ratio for a company?

A: An activity ratio is a financial indicator that shows how effectively a firm is generating revenue…

Q: it of What is considered a summary of profit or loss? Select one: a. Retained earnings b.…

A: The correct answer to the question is "C. Income Statement"Income statement is considered as summary…

Q: Which financial ratio measures a company's ability to pay its short-term obligations? a)…

A: A financial ratio is a quantitative relationship between two or more financial figures obtained from…

Q: Which financial ratios would you recommend to evaluate a company's solvency? Once these ratios are…

A: To evaluate company solvency,  Solvency ratios are the company long-term ability to cover the…

Q: Dividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Discuss the steps in analyzing financial statements using trend percentages.

A: Trend percentage allows the financial manager to compare the financial information present in the…

Q: When using vertical analysis, we express income statement accounts as a percentage of a. Net income.…

A: Vertical analysis is the method of financial statement analysis, and it is useful in evaluating a…

Q: When analyzing financial statements, creditors are more concerned with which of the following? a.…

A: Financial statement analysis: The process of analyzing the financial statements of a company to…

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: Does dividend policy affect on Debt to equity ratio? And what does the negative D/E ratio indicat

A: Debt equity ratio indicates the level of use of financial leverage in a company and the formula for…

Q: How is a financial ratio analysis performed? Comparing two items in financial statements. Evaluating…

A: Performing a financial ratio analysis involves examining and interpreting various ratios derived…

Q: Advantage and disadvantages of ratios in analyzing financial performance

A: Ratio Analysis is the financial analysis technique which is used to analyse the financial condition…

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

A: Definition: Assets: These are the resources owned and controlled by business and used to produce…

Q: What do the following ratios reveal about the financial health of a company? And how do I calculate…

A: Liquidity Ratios: These ratios play an important role in measuring or analyzing the short term…

Q: What are common-size financial statements and how are they used? What item is the key figure (that…

A:

Q: Define the term Earnings per common share?

A: Earnings per common share: A company generate the portion of profit or loss every year. Earnings per…

Q: explain financial ratios and financial cycle

A: Financial ratios are designed using the numerical values taken from financial statements to obtain…

Q: describe how ratio analysis and other techniques can be used to model and forecast earnings.

A: Ratio analysis is a quantitative method to evaluate the company’s financial strength by the…

Q: What are the importance of accounting ratios

A: Importance of accounting ratios: Debt/Equity ratio Working Capital ratio Inventory Turnover ratio…

Q: How are the earnings per share important piece of financial information provided in the income…

A:

Q: What do earnings per share report, and how is it calculated?

A: Earnings per share (EPS): It refers to the share of earnings earned by the shareholder on each…

Q: The return on assets ratio is a: OLiquidity ratio. O Solvency ratio. O Profitability ratio.

A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…

Q: Describe how the times interest earned ratio is used to evaluate a company’s financial condition

A: Times interest earned ratio also known as interest coverage ratio is the name of a solvency ratio…

Q: Based on the balance sheet and income statement ATTACHED; 1. what is the net profit margin 2. what…

A: Ratio measurement is in terms of Financial world, depicts that a single accounting figure by itself…

Q: Explain the following Investment ratios and indicate how they are computed: Earnings per share (EPS)…

A: Earnings per share (EPS) is ascertained as the benefit of an organization divided by outstanding…

Q: Computing liquidity, working captial and current ratio. Computing measures of profitability, profit…

A: Liquidity ratios emphasizes on the company’s ability to fulfill the current obligations out of the…

Q: Which of the following ratios is used to analyze liquidity?a. Earnings per share.b.…

A: Liquidity is the ability of the organisation to pay off its short term obligations.

Q: Define earnings per share.

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: Define each of the following terms: d. Forecasted financial statement approach using percentage of…

A: Forecasted financial statement approach using percent of sales: This process begins with future…

Q: What recommendations can be made to a company based on a ratio analysis? (current ratio, cash ratio,…

A: Ratio Analysis is a technique to present the financial position of the company in the simplest,…

Q: The percentage analysis of increases and decreases in individual items on comparative financial…

A: A financial statement is a group of four statements of a company. These statements are as follows:…

Q: The ratio that measures how much an investor is willing to pay for a dollar of earnings is known as…

A: Ratio analysis gives information about the profitability, liquidity, and operational efficiency of…

Q: a. Gross profit margin. b. Operating profit margin. c. Net profit margin. d. Return on shareholders'…

A: In case of multiple subparts of a question, we are allowed to be solve only the first three…

Q: What is the usefulness of using Ratio analysis in financial reporting? What is industry average? How…

A: Ratio Analysis: Ratio analysis is a quantitative means of obtaining insight into a business's…

Q: Describe two Liquidity Ratios and explain how they are used to measure a company's performance and…

A: Ratio analysis is one of the technique of management accounting analysis. Liquidity ratios is one of…

Q: Which of the following ratios best measures the profitability of a company?

A: Gross margin, current ratio, and net operating asset turnover are all important ratios for analyzing…

Q: Why is it important to use ratios to analyze financial statements?

A: Financial statements are those records which are prepared by businesses to convey activities related…