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- Define 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 ratiosCalculate the following ratios: return on equity, return on assets (levered), return on sales (levered), asset turnover, and financial leverage.d. Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on assets, return on assets, ROA Model, return on equity, and ROE Model
- The following ratios are indicators of liquidity ,except_______ Group of answer choices current ratio asset turnover accounts receivables turnover inventory turnover ratioDividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to stockholders' equity. b.acid-test ratio. c.current ratio. d.return on investment.Answer the following question a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
- Present formulas and examples of the following financial ratios (Financial ratios)a. gross marginb. profit margin on salesc. return on equity (ROE)These are group of ratios that reflect the combined effects of liquidity, management efficiency in handling the assets and liabilities on the operating results of the business. a. Liquidity ratiof b. Solvency Ratios c. Profitability Ratios d. Growth RatiosCalcuate the following ratios 1. Profitability 2. Liquidity 3. Gearing 4. Investment
- The investment turnover is the ratio of a. operating income to sales b. sales to invested assets c. operating income to invested assets d. assets to liabilitiesb. 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.Profitability ratios include all of the following EXCEPT a.current ratio. b.asset turnover. c.return on total assets. d.price-earnings ratio.
