. Describe one profitability ratio and its use.
I am describing about Earnings Per Share(EPS)
This ratio measures profitability from the point of view of the ordinary shareholder. A high ratio represents better the company is. An investor thinks to invest in those company whose EPS is more than anothers in the market
Formula: Net Profit ÷ Total no of share outstanding
Discuss the importance of ratio analysis and describe the type of information that profitability and liquidity ratios provide the small business owner. ?
A company's gearing ratio could be used to assess its Select one: a. Profitability b. Long-term solvency and stability c. Short-term liquidity d. Working capital efficiency
Describe a firm's liquidity position if its current ratio is less than one Describe its net working capital in terms of obligations and ability service
All of the following statements accurately describe the debt ratio except. - The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt. - A relatively high ratio is always desirable. - Many factors such as a company's age, stability, profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio. - It is of use to both internal and external users...
The current ratio is one of the most utilized measures of profitability. True False
Profitability index – Write a paper about the use of the profitability index. It is a ratio that provides information about the present value of net cash flows to the net investment. It provides a measure of the relative present value return for each dollar of initial investment. Discuss its usefulness. Should managers rely upon it? Consider its usefulness in a capital rationing situation (capital investment under conditions of financial restraint). Requirements: 500 words,
30. What is a ratio that measure's a company's profitability: 31. What is a ratio that measure's a company's solvency?
The average age of inventory ratio would most likely be considered a. a profitability ratio b. a leverage ratio c. a working capital measure d. a debt ratio
The TIE ratio measures the firm’s profitability. True or False ?
What are the five widely used financial ratios used to analyze a company? Describe each one of them Profitability Ratio Asset Turnover Ratio Financial Leverage ratio Liquidity Ratios Market Value Ratios