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

Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…

A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…

Q: Which of the following ratios is always the lowest? a. The net profit margin b. The gross profit…

A: Profit margin is a financial metric that measures profitability of a business or a specific product…

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: Return on Capiatal employed =  O a. Return on Total Assets  O b. Return on Equity  Oc. Return on…

A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…

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: Profitability ratios Profit margin Return on assets Return on equity Market value ratios -…

A: Current Ratio / Quick Ratio / Operating Cash Flow Ratio Current Ratio - Current Asset / Current…

Q: 1. What is and describe the “five question approach” to using financial ratios?

A: The "five question approach" clusters financial ratios around important questions that may be…

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: 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: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: Calculate Ebanks, Inc.'s margin and net income. h. Çalculate Ebanks, Inc.'s return on а. equity.

A: Step 1 Calculation of net income: Calculation of Margin:

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: Discus each of the following ratios as used in fundamental analysis and what each ratio reveal.…

A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…

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: Return on equity b. Total assets turnover c. Return on assets

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: The calculation of earnings and profits is used primarily to determine, which of the following: O a.…

A: Every company will try to increase the profitability from its operations. The company will earn…

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: A) Why do we use ratios to compare companies? B) What are the main financial statements?  C) What…

A: Ratios are used to compare companies because they provide a standard measure that can be used to…

Q: Explain the four main equity valuation ratios where “Price” is the numer-ator. Give one positive AND…

A: solution the four equity valuation ratios where “Price” is the numerator are a)price-earnings (P/E)…

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

A:

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: Identify the major types of financial ratios and what they measure.

A: Accounting ratios are calculated to measure the liquidity, solvency, and profitability of the…

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

A:

Q: Which one of these ratios measures the efficiency at which a firm employs its assets?

A: A ratio is a tool used by the management to make an analysis of the financial statements(profit and…

Q: Which of the following ratios is most useful in evaluating solvency? Multiple Choice Current ratio…

A: The ratio measures the company's financial performance and progress over time. It is the quantity…

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: 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: Why is it important to analyze trends in various financial ratios as well as their absolute levels?

A: Accounting ratio:   It is a number expressed in terms of another to establish relationship among…

Q: What are the categories of the most Common Financial Ratios:

A: Lets understand the basics. Financial ratios helps management to understand the performance of the…

Q: Questions: 1. Times interest earned ratio 2. Debt to equity ratio

A: The answer for the theory question on Times interest earned ratio and Debt to equity ratio is…

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 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: Explain the importance of financial ratio analysis, including the importance or relevance of…

A: Its a way to conduct a company's financial health check.  Suppose you are the investor and you are…

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: which ratio is of greater interest to the owner-manager, the rate of return on total assets or the…

A: The ratio refers to the measure that determines the relation between two numbers. In accounting, the…