At the operating breakeven point, ... equals zero. O a. variable cost O b. fixed cost O c. earnings before interest and tax (EBIT) O d. net profit after tax
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- 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. EPSThe numerator of the return on total assets is a. net income b. net income plus tax expense c. net income plus interest expense d. net income minus preferred dividendsEarnings before interest and taxes are positive above the operating breakeven point, and a loss occurs below it. true or false
- Required: (a) You are required to calculate the following ratios:(i) Gross profit margin(ii) Operating profit margin(iii) Expenses to sales(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover (b) In light of your calculations comment on the performance of the company over thelast two years.Net operating profit after taxes (NOPAT) is the amount of net income a company would generate from its operations if it had no interest income or interest expense. Group of answer choices True FalseNet Income or Net Profit a.Net Income is less than Net Profit b.Are the same c.Net Profit is the profit before expenses are deducted d.None of these choices are correct.
- Profit is A) assets minus liabilities B) the excess of revenues over expenses C) the excess of expenses over revenues D) a revenue OE) the same as equity StryWhich of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection PeriodWhat is true? a.EBIT and Operating Income are often used interchangeably b.If a firm records depreciation expense on the income statement, then EBIT will be less than EBITDA (e.g.Earnings Before Interest, Taxes, Depreciation and Amortization) c.EBIT is an acronym for Earnings Before Interest and d.Taxes All of the above
- The ratio that measures how much an investor is willing to pay for a dollar of earnings is known as a _____________ ratio. A. asset management B. market value C. profitabilityThe balance in retained earnings is not affected by Choose net income. aluation of a company's ability to pay current net loss. issuance of common stock. dividends.A ratio that measures a company’s profitability is thea. leverage ratio.b. gross margin percentage.c. current ratio.d. times-interest-earned ratio.
