.The Moon Company had net income in 2022 of AED 40 million. Here are some of the financial ratios from the annual report. Return on Assets = 5% Debt Assets Ratio = 55% Profit Margin = 4.5% Inventory in days = 20 days Using these ratios, calculate the following for the Remal Company: a) Sales b) Total assets c) Total asset turnover d) Total debt e) Stockholders' equity f) Return on equity g) Inventory
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
2.The Moon Company had net income in 2022 of AED 40 million. Here are some of the financial ratios from the annual report.
Using these ratios, calculate the following for the Remal Company:
a) Sales
b) Total assets
c) Total asset turnover d) Total debt
e)
g) Inventory
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