What 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?

Q: A general question about ratios: do you think that a ratio can be too high or too low? Why or why…

A: Answer: The ratio can be too high and too low, the answer depends on number of factors and it varies…

Q: . Among the financial ratios learned, what is the best ratio in understanding and monitoring the…

A: A financial ratio is used to compare a company's financial situation or output to that of other…

Q: What are the different ways to calculate the Financial ratios?

A: Financial ratios:   Financial ratios are the metrics used to evaluate the capabilities,…

Q: What are the different types of financial ratios used in evaluating a firm's financial health?

A: The question is based on the concept of financial health of a company , financial health depend on…

Q: you are an investor how do you assess the financial ratios of the company? And why

A: FINANCIAL ratios are considered to be an important indicator for the companies financial stability…

Q: What is the basic purpose for examining trends in a company’s financial ratios and other data?

A: Ratio analysis, horizontal analysis and vertical analysis are the analytical tools used by the…

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: how to calculate and interpret basic financial statement ratios?

A: The question is based on the concept of Financial Accounting. Financial ratios are a mathematical…

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: Does net debt ratio provide useful information to the investor? Are the NonGAAP measures, ROCE and…

A: Investors are the resources who bring their capital to the company with an intention to earn the…

Q: As financial management students, why do you need to study financial statement analysis like…

A: Financial Statements:- A financial statements are those financial reports that provides detail…

Q: Summarize some of the Key Financial Ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: What are some common red flags in financial statement analysis?

A: Red flags are the situation that persists where stocks are potentially insecure or undesirable.

Q: The financial ratios which address the question: Has the firm earned adequate returns on its…

A: Financial Ratios tells us about company's fianncial performance and helps in comparing with…

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: How can you explain the liquidity, leverage, profitability, asset management, and price ratios as…

A: Amazon is one of the world's largest e-commerce companies, and as such, its financial ratios and…

Q: In your opinion, what is the advantage of using comparative statements for financial analysis rather…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Explain why financial analyst are interested in liquidity and solvent ratios

A: Liquidity Ratios help in determining the ability to pay its short-term obligations, whereas Solvency…

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: Discuss how do you analyze a company's performance using financial ratios?   Which ratios are most…

A: Analyzing a company's performance using financial ratios is a common method for evaluating its…

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: If you were an investor, what specific financial ratios are you interested about? Why are you…

A: Ratio analysis is a method of analysing various aspects of a firm with the help of quantitative…

Q: What is the purpose of a financial ratio analysis? Define a financial ratio for each of the…

A: Ratio analysis provides several benefits for businesses and investors, including Performance…

Q: Who are the steps involved in estimating the earnings per share for an aggregated market service?

A: Earnings per share (EPS) refers to the amount a company makes on each of the common stock…

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: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

Q: How do companies evaluate their performance using financial ratios, and what are the key ratios used…

A: Financial ratios are a useful tool for companies to evaluate their financial performance and…

Q: What is the purpose of calculating a set of financial ratios?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: When assessing a company’s Credit Risk, analysts use financial ratios to determine liquidity and…

A: The analysis of ratio of company which consist of different type of ratio liquidity ratio activity…

Q: What caused the increase in liquidity ratios??

A: Liquidity ratios use metrics such as the quick ratio, current ratio, and operating cash flow ratio…

Q: hat are some uses and limitations of financial ratios?

A: The financial ratio is a method of analyzing the financial statement of the company that helps to…

Q: What do the Debt management ratios reveal?

A: Debt management ratio: Debt management ratio reveals the firm’s ability to repay the long term debts…

Q: Profitability Ratios: Asset Efficiency Ratios: Liquidity Ratios: Solvency Ratios: Stockholder…

A: Financial ratios or accounting ratios  is a relative magnitude of two selected numerical values…

Q: What is the limitation of Financial Statement Analysis

A: Financial statement analysis is the process of analyzing and evaluating the corporate entity's…

Q: Discuss how a financial manager can use ‘current ratio’ and ‘debt ratio’ in ratio analysis to better…

A: Ratio analysis is a technique of analyzing and interpreting financial statements by establishing and…