Which of the following ratios would a company want to see decrease over time? ROA Days Sales in Recievables Inventory turnover ROE Current Ratio
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Which of the following ratios would a company want to see decrease over time?
ROA
Days Sales in Recievables
Inventory turnover
ROE
Current Ratio
Step by step
Solved in 2 steps
- What does the inventory turnover period ratio measure? Select one: a.Profitability. b.The average time an organisation holds inventory. c.The liquidity of the firm. d.How much the firm's current assets could decrease and still leave it able to pay its current liabilities.Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit margin C. Cash coverage ratio D. Receivables turnover E. Quick ratioA decrease in Selling and Administrative Expenses woulddirectly impact what ratio?a. Fixed asset turnover ratio. c. Current ratio.b. Times interest earned. d. Gross profit percentage.
- Which of these is not a liquidity ratio? Choose Current ratio Asset turnover ratio Inventory turnover ratio Receivables turnover ratio Which of the following usually is least important as a measure of short-termA. What is the company’s gross profit margin?B. What is the company’s inventory turnover?C. What is the company’s current ratio?D. What is the company’s return on asset?E. What is the company’s net profit margin? F. What is the company’s days receivable?G. What is the company’s quick ratio?Which ratio would a company most likely use to measure its ability to meet short-termobligations?A . Current ratio.
- Which of the following is a measure of profitability?a. Quick (acid-test) ratiob. Net salesc. Inventory turnoverd. Return on assets (ROA)How can Turnover Ratios be used to judge a company's performance?Calculate the projected inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. How does Computron’s utilization of assets stack up against that of other firms in its industry?
- A ratio that measures a company’s profitability is thea. leverage ratio.b. gross margin percentage.c. current ratio.d. times-interest-earned ratio.Which of the following ratios is used to measure the profit earned on each dollar invested in a firm?a. return on sales ratio c. current ratiob. return on equity d. asset turnover ratioProvide an analysis of other common ratios including gross margin, operating margin, current ratio, inventory turnover, average receivables period, average payables period. What are the trends in relationship to itself and its competitors.
