What does price/earnings ratio tell you?

Q: What is the dividend payout ratio and the dividend yield ratio?

A: Dividend payout ratio is the ratio between total dividends and the net income of a company. It helps…

Q: What is the profitability index? When is it used?

A: Capital investment analysis: Capital investment analysis is the process by which management plans,…

Q: What does inventories /sales ratio mean?

A: An accounting metric used to measure liquidity, solvency, efficiency etc. of a business entity is…

Q: What is Day's-sales-outstanding ratio?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What is market value ratio?

A: Ratio is the relation between two different quantities obtained after dividing one by another.

Q: Define price earnings ratio.

A: P/E Ratio: Price Earnings ratio is the ratio of company’s current share price to the company’s…

Q: Explain an example how to calculate gross profit percentage.

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: financial variables that affect the price-earning ratio

A: The price-to-Earning ratio is derived by dividing the Market Price of Share by Earning Per Share.…

Q: What is earnings management?

A: Earnings refer to the amount earned by the business during the financial year. It may vary from year…

Q: From the following: What is the industry average price–earnings ratio? What is Ragan’s…

A: The industry average PE ratio can be calculated as follows : P/E ratio = Price earningsPutting…

Q: What is market/book (M/B) ratio?

A: Introduction: Market value is nothing but the value derived when the stock price is multiplied by…

Q: Define the term s price-earnings ratio?

A: Financial Ratios: Financial ratio analysis expresses the relationships between different items…

Q: What is the d market book ratio?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What is Re-order quantity? What is Re-order level? What is Maximum stocklevel? With respect to…

A: Inventory management consist of various levels namely re-order level, re-order quantity, maximum and…

Q: What is the internal price index? What is the dollar-value LIFO inventory?

A: LIFO is the Last in first out inventory method in which inventory purchased last will be sold first.…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: How do the costs of doing business affect prices?

A: The cost of producing a product or service that a company sells is usually referred to as the cost.…

Q: What is the difference of Cost of Equity and the required rate of return on equities?

A: The amount of money that would be transferred to a company's shareholders if all of the company's…

Q: Define the term profit Margin on Sales?

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: What is the lnventory·turnover ratio?

A: Inventory turnover ratio: Inventory turnover ratio indicates how many times a corporation has sold…

Q: what is profitability ratio?

A: Financial ratios provide information related to the company. There are various types of ratios like…

Q: What is the Price Earnings Ratio?

A: The price-earnings ratio is the ratio which helps the investor to determine the market value on the…

Q: What is market value ratios?

A: Introduction: Market value ratios help to assess the economic position of publicly dealt…

Q: How is the profit margin on sales calculated?

A: Profit margin on sale: it's categorized under profitability ratio , generally this ratio is used to…

Q: What is the Fixed Charge Coverage Ratio? • What is the Earnings Yield Ratio?

A:

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: Explain the trend analysis of Basic Earning Power.

A: Basic Earning Power (BEP) is a financial metric that creates a relationship between the total…

Q: Price-earnings ratio

A: Price-earning ratio = Price per share/Earnings per share

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: How does earnings management affect earnings quality?

A: Earnings of a company is referred as net income or bottom line item of a company. It is a very…

Q: I need exampel on: Price - to -earning ratio Price book ratio Price to cash flow ratio

A: Price Earnings Ratio: It is the connection between an organization's price of stock and the EPS…

Q: What is net profit margin?

A: The margin of net profit is equal to the amount of income produced by the net sales or gains. For a…

Q: What are the different profitability ratios?

A: Profitability ratios are the measure which is used to depict the profitability position of the…

Q: Explain what is meant by the term earnings quality.

A: The term earnings refer to the amount of money the company had earned during a particular period of…

Q: What is gross profit margin?

A: The method to analyze the performance of a company through its profitability is term as the…

Q: Which product line has the highest gross profit %? Which product line has the highest net income %?

A:

Q: What is Pro forma (or projected) profit-and-loss statement?

A: Pro Forma financial  Statement (also called as pro forma profit and loss) means that however the…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share

Q: e selling price per unit?

A: Total sales revenue = Fixed expenses + Total variable expenses + Profit Given that, Fixed expenses =…

Q: Explain price/earnings (P/E) ratio

A: There are various types of ratios. some ratios are to know the hearing capacity or market price of…

Q: Explain the types Earnings?

A: Earning is the amount of income that an individual or organization receives during a year.

Q: What does the price-earnings ratio measure?

A: Formula Price earning ratio = Market Price per shareEarnings per share

Q: What is the price/earnings ratio, and how is it calculated?

A: Earnings per share (EPS): It refers to the share of earnings earned by the shareholder on each…

Q: for Market Price per S

A: Step 1 The market price or market capitalization of a company is calculated using the market price…

Q: What does the price-to-earnings ratio (P/E) tell you?

A: Ratio analysis is a process under which we evaluate the performances of company and its competitor…