ermine to which formula does each of the following refers:, Significance of Financial Ratios Used to Measure Profitabilityh. Profitability in the use of working capitalAmount of profit per peso of salesProfit per peso of current assets every time3.i.Overvaluation or undervaluation of stockb.j.Rate at which owner's equity is being usedcurrent assets are usedk. Amount of actual returns per share ofRate at which earnings per share arecapitalizedd. Earnings of the corporation on a per shareof capital stock basisNumber of times average current assets areC.common stockEfficiency in the use of total resourcesm. Numbers of times working capital is usedPortion of sales absorbed by operating costsProfitability in the use of invested capitalProfit earned every time working capital is1.n.e.0.usedp.f.Ratio of distributed earnings to earnings perusedshareq. Profitability in the use of current assetsInsufficiency of current assetsg. Adequacy of markup on salesr.

The first 3 subdivisions are answered for you. Please resubmit specifying the question number you…

Answered: Amount of profit per peso of sales…

Amount of profit per peso of sales Profit per peso of current assets every time 3. b. current assets are used Rate at which earnings per share are C. capitalized

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Annual report; balance sheet; income statement Common...

See similar textbooks

Similar questions

Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test, ratio Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; EBITDA coverage ratio Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; return on total assets (ROA); return on common equity (ROE) Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/book (M/B) ratio; book value per share Trend analysis; comparative ratio analysis; benchmarking DuPont equation; window dressing; seasonal effects on ratios
The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Determine the following ratios for both companies, rounding ratios and percentagesto one decimal place: a. Return on total assets b. Return on stockholders' equity c. Times interest earned d. Ratio of total liabilities to stockholders' equity 2. Based on the information in (1), analyze and compare the two companies'solvency and profitability. Comprehensive profitability and solvency analysis Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): Balance sheet information is as follows:
Which of the following is a measurement of earnings that represents the profit before interest, taxes, depreciation and amortization are subtracted? A. net income B. retained earnings C. EBITDA D. EPS
Using the following Balance Sheet summary information, calculate for the two companies presented: A. working capital B. current ratio Then: A. evaluate which companys liquidity position appears stronger, and why.
Ratio Analysis Consider the following information. Required: Calculate the stockholder payout ratios. (Note: Round answers to two decimal places.) Calculate the stockholder profitability ratios. (Note: Round answers to two decimal places.)
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
Match the ratio to what it measures F. Current ratio Acid test ratio Working capital Accounts Receivable turnover - Days Sales Uncollected Inventory tunover Days Sales in Inventory - Debt ratio Equity ratio Debt-to-equity ratio Profit margin - Return on Total Assets - Return on Common Shareholder's Equity Price Earnings Ratio Dividend yield A. How quickly a company sells its inventory B. Whether the stock is a good value C. The cash return per share of stock D. How much of each sales dollar is profit E. How efficient the company is in collecting from its credit customers F. Ability to pay short-term debts G. How much of the company's assets are financed by creditors H. How much of the company's assets are financed by investors I. The extent a company is leveraged J. Return on investment
Using the information from 27A prepare the following ratios: gross profit margin profit margin return on assets earnings per share current ratio acid test ratio debt ratio Indicate what each is used for (ie: measuring efficiency, solvency etc)
Question: Which financial ratio measures the proportion of net income generated per dollar of revenue? A) Return on Investment ( ROI) B) Operating Profit Margin C) Return on Sales (ROS) D) Earnings per Share (EPS)
Define each of the following terms: a. Liquid asset b. Liquidity ratios: current ratio; quick ratio c. Asset management ratios: inventory turnover ratio d. Debt management ratios: total debt to total capital; times-interest-earned (TIE) ratio e. Profitability ratios: profit margin; return on total assets (ROA); return on common equity (ROE); return on invested capital (ROIC); basic earning power (BEP) ratio f. Market value ratios: price/earnings (P/E) ratio; market/book (M/B) ratio; enterprise value/EBITDA ratio
Present formulas and examples of the following financial ratios (Financial ratios)a. gross marginb. profit margin on salesc. return on equity (ROE)
A ratio that measures a company’s profitability is thea. leverage ratio.b. gross margin percentage.c. current ratio.d. times-interest-earned ratio.