solvency ratios

Q: How are the ratios useful?

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

Q: What limitations do ratio analysis have?

A: Ratio Analysis: It is a technique used in the financial analysis field. Ratio analysis helps to use…

Q: advantages and disadvantages of using ratios

A: Accounting ratios are important metrics used to evaluate the financial position of a business…

Q: How the other ratios affects the ROE?

A: Return on equity is used to measure the company’s ability to utilize their assets to generate…

Q: What is the difference between margin and markup?

A: Margin and Markup are two terms used for calculation of selling price of the product. Margin is also…

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

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 the difference between vertical analysis and horizontal analysis?

A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…

Q: What is factoring?

A: It is a money related service in which the business entity sells its bill receivables to an outsider…

Q: Which of the following is true about rates?

A: Total Rate of Return: The total rate is the real rate of return made on an investment over a period…

Q: Liquid ratio formula?

A: Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

Q: Define comparative ratio analysis

A: Answer: Comparative analysis of the ratio is a method used by companies to judge the financial…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

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: What is margin call?

A: The margin is defined as the money required from the traders for futures exchanges.  It is to…

Q: Calculate Vertical and Horizontal Ratio Analysis?

A: Ratios refer to the measurement of the relation between two sums. In accounting, ratio analysis is…

Q: One of several ratios that reflects solvency includes the:

A: Solvency ratio of the business means how well a company's cash flows can cover or pay long term…

Q: Discuss the advantages and limitations of Ratio Analysis.

A: Ratio analysis is the process of determining and interpreting numerical relationships based on…

Q: What are the Differences in Maturities?

A: Maturities in the context of the bond mean that bonds are issued for a specific period of time. It…

Q: What is current ratio and how is it calculated?

A: Liquidity ratio:Liquidity or solvency ratio helps to measure the ability of the concern to meet its…

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: Define efficiency ratios

A: Efficiency Ratios : These ratios are employed to evaluate the efficiency with which the firm manages…

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: What is current ratio

A:

Q: What is the difference between solvency ratio and liquidity ratio?

A: The quantitative technique that helps in the measurement of the liquidity, profitability, solvency…

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

A: P/D ratio is more accurate way for anticipating what is really required. P/D ratio compares the…

Q: solvency ratio

A: The solvency ratio is the ratio that tells about the company's ability to pay its liabilities or…

Q: Why is liquidity ratio important?

A: Liquidity is how easily cash is available on hand. Liquidity ratio is defined as a ratio that is…

Q: Give some examples of the market-value ratios?

A: Market value ratios may include various types of ratios which indicate the value of company’s share.…

Q: What are the different profitability ratios?

A: Profitability ratios are the measure which is used to depict the profitability position of 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 is a cross rate?

A: Cross rate is an exchange rate of currency between two countries, but both countries are not using…

Q: Why are comparative ratio analyses useful?

A: Financial analysis can be defined as the evaluation of the profitability, durability and feasibility…

Q: P/E Ratios and Bubbles?

A: Price Earning ratio shows the relationship between price of the company's share with Earning per…

Q: What does the quick ratio measure?

A: Ratio Analysis is a financial tool used to derive conclusions about the company’s health and overall…

Q: What is hurdle rate?

A: Hurdle rate a rate usually used in capital budgeting decisions to calculate the acceptability of a…

Q: Define solvency ratios.

A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…

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: Explain the limitations of ratio analysis

A: Limitations of ratio analysis:Ratios are mostly computed based on historical costs as a result;…

Q: Why is current ratio used?

A: Current ratio is the measure of liquidity position of the company. It shows the ability of the…

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: Define Profi tability ratios

A: A ratio is a tool used by management to analyze the effectiveness of various financial statements.…

Q: Distinguish between Current ratio and Quick ratio?

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