Ans : B. Profit Margin ratio.
The most widely used profitability ratio is Profit margin ratio which computes profit and sales of a company. This profit margin ratio calculates the firms capacity to earn profit from sales.
The most widely used profitability ratio is A. Quick ratio B. Profit margin C. Return on...
Which of the following is a measure of profitability? A. Quick (acid-test) ratio B. Net sales C. Return on assets (ROA) D. Inventory turnover
Profitability ratios: l. Profit margin % m. Return on assets % n. Return on equity % SMOLIRA GOLF CORP. 2018 Income Statement Sales $ 336,329 Cost of goods sold 231,000 Depreciation 21,600 Earnings before interest and taxes $ 83,729 Interest paid 14,400 Taxable income $ 69,329 Taxes (21%) 14,559 Net income $ 54,770 Dividends $ 21,000 Retained earnings 33,770 Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabilities and...
Question Below are profitability Ratio ratio of Honey Flower in 2015 & 2016 2015 Profit margin Return on Squity 2016 1996 345 a. Ina gate whether the above ratio why. whether the above ratios are favorable/unfavorable for 2016 Compared to 2015 (2 marks) (2 marks) b. What does 2016 Profit margin ratio mean to you? (2 marks) 6. Recommend two ways to company to increase profit margin in 2016? d. Recommend two ways to the company to increase equity ratio...
5 ratios.Gross profit percentage, debt to equity ratio, profit margin ratio, rate of return of total assets and price/earnings ratios for Walmart Inc. and Target Corp?
4. Explain what the following ratios communicate about the business. a. Gross profit margin (2 marks) b. Operating profit margin (2 marks) c. Return on assets (ROA) (2 marks) d. Return on equity (ROE) (2 marks) e. Gearing ratio (2 marks) f. Inventory turnover (2 marks) g. Interest coverage ratio (2 marks) h. Earnings per share (2 marks) i. Price earnings ratio (2 marks) j. Dividend yield (2 marks) k. Dividend payout ratio (2 marks) l. Net working capital (2...
Match each ratio to its use. Items may be used more than once. - A. B. C. D. E. F. G. H. Price-Earnings (P/E) Ratio - A. B. C. D. E. F. G. H. Working Capital - A....
Match each ratio to its use. Items may be used more than once. - A. B. C. D. E. F. G. H. Price-Earnings (P/E) Ratio - A. B. C. D. E. F. G. H. Working Capital - A....
Ratios for Simmons IndustryBetter (B) or worse(W) Ratio Δverage Profit margin Return on assets Return on equity Receivables turnover Avg. collection period Inventory turnover Fixed asset turnover Total asset turnover Current ratio Quick ratio Debt to total assets Times interest earned Fixed charge coverage 17.5% 20.8% 35% 4.4x 68.0 days - 3.5x 2.4x -76x 1.28 .85 .45 12.0x 3.6x Given the balance sheet and income state for Simmons Maintenance ratios that are also shown for the industry average. For each...
Return on assets equals: Profit margin × Inventory turnover. B) Gross profit ratio × Asset turnover. C) Gross profit ratio × Inventory turnover. D) Profit margin × Asset turnover. 33.If your employer declares bankruptcy, this can have a major effect on your pension if you are in a Either plan B) Defined Benefit Plan C) Neither Plan D) Defined Contribution Plan 37If you put $200 into a savings account that pays annual compound interest of 8% per year and then...
1. Which statement is incorrect? a. Dividend yield measures the rate of return on the market price of a share. b. The dividend payout ratio measures the percentage of profit paid out in dividends to ordinary shareholders. c. Dividend per share is the ratio to use when comparing income from shares with income from alternative investments. d. Dividend yield is an important ratio for an investor who is acquiring shares mainly for income. 2. A profit ratio for a retailer...