What is the P/D ratio? How can it be improved?

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: What is an acceptable current ratio?

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: How do the Internal-Rate-of-Return Criterion relate to the PW Analysis?

A: Capital budgeting:   It is the process in which the business uses to determine which proposed fixed…

Q: Define the term cutoff values?

A: Cut-off values for diagnosis or screening examinations that have constant outcomes (estimated on a…

Q: What is one interpretation of a high P/E ratio?

A: Price to earnings ratio (P/E ratio) states the relationship of the earnings with price of that…

Q: What is Ratio Analysis? Briefly explain

A: Ratio Analysis: It is the procedure of analyzing and looking at money related data by determining…

Q: What are some steps that must be taken when using ratio analysis? What is the most important aspect…

A: To analyze the financial statements, ratio analysis is an important tool. Ratio analysis helps to…

Q: What is indifference curve?

A: Indifference curve: It is a diagram indicating a mix of two items that give equivalent fulfillment…

Q: How do we calculate the current ratio?

A: Current ratio: Current ratio categorized under liquidity ratio which is helps to know the liquidity…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: How do we calculate the quick ratio?

A: Quick ratio: Categorized under liquidity ratio  Quick ratio which helps company to know the it's…

Q: Is an higher NPV better than a lower NPV and why?

A: The net present value is the difference between sums of the present value of cash inflows and…

Q: The Peg Ratio appears to be a refinement that allows us to do what? Is the ratio aptly named?…

A: The price earnings ratio of the PE ratio is one of the most common measure to value the stocks of…

Q: What is the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR): The internal rate of return (IRR) is a measure utilized in capital…

Q: When calculating equivalent values, what do we need to identify?

A: Equivalent values refer to the worth of the amount at any point of time. In other words, it defines…

Q: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

Q: What is net present value (NPV) profile?

A: Net present value profile is mainly the graphical representation of net present value of different…

Q: What does a high current ratio indicate?

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: Explain the coefficient of variation?a

A: The coefficient of variation (CV) may be a statistical measure of the scattering of information that…

Q: Describe the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR) is defined as the rate of discount at which the NPV of human capital…

Q: How can the quick ratio be determined with the given information?

A: Quick Ratio: Quick ratio is a liquidity ratio calculated for the purpose of evaluating the liquidity…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: What is Altman's Z-score and what does it tell you?

A: The Altman Z Score is utilized to forecast the probability that a business will go bankrupt inside…

Q: What is PV ratio? How do you calculate it?(explain with an example)

A: PV ratio is the ratio that represents the function of sales and contribution. This shows the…

Q: Describe the Incremental B/C-Ratio Analysis?

A: Benefit cost analysis: Benefit cost analysis refers to analyzing the desirability of project where…

Q: what is quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: Why is ratio analysis so significant?

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

Q: What should be done to apply rate-of-return analysis correctly?

A: Rate of return: It can be defined as the rate of interest that has been earned by the company on the…

Q: What is ratio analysis?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What does the current ratio measure?

A: Ratios are the group of metrics which are used to measure the profitability as well as efficiency of…

Q: Define the term an incremental benefit-cost ratio?

A: The incremental cost is the additional cost incurred for producing an additional one unit of a…

Q: WHAT IS THE TOTAL CURRENT RATIO?

A: Current ratio is a ratio used for measuring the liquidity of the business that how much current or…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…

Q: What is the geometric-gradient-series present-worth factor?

A: Present worth: It is the present value of future cash flows. The gradient is a change occurring in…

Q: Write an alternative way to derive the geometric-gradient-series present-worth?

A: Geometric-gradient-series present worth is derived with the help of the following formula: g is…

Q: Formula for quick ratio?

A: Quick ratio is an important financial ratio used to evaluate the liquidity of the company

Q: What do you understand by current ratio? What are it uses? What are its limitations?

A: As per Bartleby policy, only one question will be answered. A ratio is simply a mathematical…

Q: what is the quick ratio,

A: The quick ratio( also know as acid test ratio) is an state that a company’s short-term liquidity…

Q: What is the difference between the current ratio and the quick ratio?

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

Q: What is the difference between smart beta ETFS and index ETFS?

A: Smart beta exchange traded funds (ETFS) is a systematic approach which gives the advantage of active…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: How to calculate current ratio?

A: The current ratio is a financial ratio that measures whether or not a firm has enough resources to…

Q: solvency ratios

A: Solvency ratio indicates the company's ability to pay off its debt obligation.