a. What is debt management ratio? b. What is profitability ratio?

Q: Calculate the leverage ratio which includes total debt to total assets ratio, equity multiplier,…

A: Total Debts to Assets ratio = Long term debt + Short term DebtTotal Assets Equity Multiplier = Total…

Q: Which ratio indicates the proportion of assets financed out of shareholders’ funds? (A) Debt equity…

A: Introduction: Any person, organization, or institution that owns stock in a company is a…

Q: What is Ration Analysis in Financial Analysis?

A: Financial analysis is done for financial statements such as balance sheet for the period ended,…

Q: Are debtors calculated at selling price or finished goods price for net working capital? and why?

A: Net working capital means the difference between the current assets and current liabilities. Current…

Q: Long-term solvency ratios Total debt ratio Debt-equity ratio Equity multiplier Times interest earned…

A: Long-term solvency ratio:- It is calculated to check the firm's long-term ability to meet its…

Q: What are the importance of the following financial ratios? Quick ratio. Debt to equity ratio.…

A: 1) Quick ratio= quick assets/ current liabilities  Quick assets= current assets- inventory- prepaid…

Q: Short-term creditors would probably most interested in which ratio?  a. Current ratio       c.…

A: Short-term creditors are mostly interested in liquidity ratios. It means the ability of the business…

Q: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: What is equity multiplier ? a) Total Assets /Equity b) Equity / Net Sales c) Total Assets / Net…

A: The equity multiplier is a common ratio which is used in accounting and finance analyses. It is…

Q: When analyzing financial statements, creditors are more concerned with which of the following? a.…

A: Financial statement analysis: The process of analyzing the financial statements of a company to…

Q: Who uses financial ratios and how the ratios are used?

A: Financial ratios are the important tool for measuring company’s performance in terms of their profit…

Q: What are the financial ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: Does dividend policy affect on Debt to equity ratio? And what does the negative D/E ratio indicat

A: Debt equity ratio indicates the level of use of financial leverage in a company and the formula for…

Q: What is ratio on equity?

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: What are the importance of the following financial ratios? Price to earnings ratio. Earnings per…

A:

Q: Which of the following ratios is not used to analyzeprofitability?a. Net profit margin ratio.b.…

A: Financial ratio analysis: It can be defined as an analysis tool that is based upon the relative…

Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…

A: SOLUTION A- Relation between profitability and efficiency ratios   Profitability ratio depicts how…

Q: Explain what is financial ratio analysis?

A: Traders and investors use ratio analysis to assess a company's financial health by evaluating…

Q: w is the use of financial statement ratio

A: Financial ratios are computed by averaging numerical values from financial statements to obtain…

Q: Which of the following risk is affected largely by the debt-to-equity ratio? Liquidity risk…

A: The debt-to-equity (D/E) ratio reflects a firm's revenue obligations to its shareholder equity and…

Q: What is market debt ratio?

A: Debt ratio: The debt ratio is a financial ratio that quantifies the degree of a corporation’s…

Q: What are the different types of liquidity ratios in accounting?

A: Liquidity measures: Liquidity measures denote a company’s capacity to meet its current liabilities.…

Q: Return on equity is: the rate of return that owners earn on their investment O the relationship of…

A: Return on equity can be defined as the earning on the equity as hold by the equity shareholders of…

Q: Write the formula for the following ratios and what each ratio measures:

A: Ratios are the measure which are used by the company to measure actually as well as it shows the…

Q: s of financial ratios? Next t e:

A: Main type of Financial Ratio are (1) Liquidity Ratio (2) Solvency Ratio (3) Activity Ratio (4)…

Q: Asset management ratios Market value ratios Debt management ratios Liquidity ratios

A: Lets understand the basics. Management calculate various ratios to calculate the result of the…

Q: The debt ratio is used primarily as a measure of:     Short-term liquidity.     Profitability.…

A: The debt ratio indicates the percentage of total assets financed by long term debts

Q: What are the importance of the following financial ratios?  • Price to earnings ratio. • Earnings…

A: 1) Price earning ratio: Market price of share/ earning per share 2) Earning per share Earning…

Q: How does the debt-to-equity ratio affect the return on equity?

A: Debt to equity ratio: The debt-equity ratio is also known as an external and internal equity ratio.…

Q: Which of the following is an idicator of financial risk ? a)     Net Sales / Total Assets b)…

A: The Financial ratio is mainly used by the investor for measuring the financial performance of the…

Q: what are liquidity ratios, leverage ratios, profitability ratios, and market measure rat

A: Ratios are calculated in order to identify the ability of the company from various parameters.

Q: Which one of the following ratios is relevant to assess long-term solvency? A. Current Ratio B.…

A: Since you have asked multiple question, we will solve the first question for you relating to long…

Q: financial ratios?

A: Ratio is tools to analyse the financial data of an organisation. Some Financial ratio are as  Gross…

Q: Why is the income statement called a dynamic financial statement?

A: Income statement is that financial statement that shows the different income as well as expenditures…

Q: What is the purpose of calculating a set of financial ratios?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: a. What is Liquidity Ratio? b. What is Asset Management Ratio

A: Solution of both the concepts are given below

Q: hat are some uses and limitations of financial ratios?

A: The financial ratio is a method of analyzing the financial statement of the company that helps to…

Q: QUESTION 2 Which of the followings is commonly used for debt ratings? return on net capital total…

A: Debt ratings: Debt rating is a scoring method used to tell about the creditworthiness of debt.…

Q: Define cost of equity? How does it relate to the ‘required rate of return’ (r) on equities?

A: Definition of Cost Equity: Cost of equity is the return that a company requires for an investment or…

Q: A debt – to income ratio can easily be calculated be from a what kind of statement? Investment…

A: The debt-to-income ratio seems to be the percentage of your monthly earnings that you allocate to…

Q: Are debtors calculated at selling price or finished goods price? and why?

A: The word debtor comes from the word debt which means a company or an individual having a debt…

Q: Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:…

A: Ratio Analysis is the financial analysis technique which evaluate the profitability, liquidity,…

Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…

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

Q: Show the calculation of the following solvency ratios: (1) the debt to equity ratio, and (2) the…

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

Q: Where is net profit shown in balance sheet?

A: The profit of a corporation is referred to as net profits.

Q: Debt to equity ratio

A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…