Based on the Liquidity ratio, which ratio determine stability, earning power and capital? Explain the formula and its impact & importance. Choose one only.

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: how to find total equity

A: Equity is referred to as the stake of owners in the business.

Q: What two components make up the cost of money for equity?

A: The cost of utilizing debt capital which a borrower pays is called an interest rate. The cost of…

Q: What is benchmarking, and what are the two main types of benchmarks in financial statement analysis?

A:

Q: What is the purpose of financial statement analysis?

A: Financial statements are written records that convey the information on the financial performance,…

Q: The return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio.…

A: Return of assets calculates the amount of profit generated on the amount of assets invested.

Q: Which one of the following methods is based on net profit rather than cash flows? a. net present…

A: We use capital budgeting to determine if a project is financially viable or not. We accept viable…

Q: Profitability ratios Profit margin Return on assets Return on equity Market value ratios -…

A: Current Ratio / Quick Ratio / Operating Cash Flow Ratio Current Ratio - Current Asset / Current…

Q: Where are Financial costs and Dividends considered in a scenario analysis? Just a simple answer

A: Introduction :  A scenario analysis is a tool used to assess the potential outcomes of a given…

Q: Based on the market value ratio, which ratio determine stability, earning power and capital? Explain…

A: The market value ratio is the ratio on the basis of market value and some specified performance…

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: What is Horizontal Analysis in Financial Analysis?

A: Financial statement analysis is the process of analyzing the financial statements of a company. It…

Q: hat does it mean by analyse profitability of invested capital

A: Introduction : In simple words, invested capital refers to the sum of all the funds that a business…

Q: Name two ratios that are used to measure financial leverage and write their equations.

A: The two ratios that are used to measure financial leverage is shown below: Debt Ratio – It tells…

Q: 3. Select any one financial institution and do your SWOT analysis?

A: INTRODUCTION SWOT analysis is tool used by business management which analyses organization’s…

Q: Discus each of the following ratios as used in fundamental analysis and what each ratio reveal.…

A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…

Q: What does the cash ratio help determine, and how is it calculated?

A: Cash ratio is a liquidity ratio that compares the assets of the company with its current…

Q: Provide a brief overview of capital structure effects.  Be sure to identify the ways in which…

A: Answer: The effect of value of capital structure depends on the effect on the debt on weighted…

Q: What are the financial ratios?

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

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Definition: Assets: These are the resources owned and controlled by business and used to produce…

Q: Summarize some of the Key Financial Ratios?

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

Q: What are the two different formulas used to Calculate the degree of financial leverage (DFL)?

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which of the following is one measure of liquidity?   a. Quick ratio   b. Profit margin   c.…

A: Introduction: Liquidity: Liquidity means which can be easily converted in to the cash with in short…

Q: Explain the importance and limitations of current ratio in measuring company’s liquidity

A: Current ratio is used to determine the relationship between current assets and current liabilities.…

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: The return on assets ratio is a: OLiquidity ratio. O Solvency ratio. O Profitability ratio.

A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…

Q: hat's the importance of considering the audience for financial statement analys

A: When you publish anything you must guarantee that what you want to say is passed properly and proper…

Q: Directions : research on the following financial analysis tool and give examples : 1. Horizontal…

A: After the preparation of final accounts, the corporation analyses its financial statements. The…

Q: Discuss the importance and differences of liquidity, solvency and profitability.

A: Liquidity is the ability to turn an asset into cash or cash equivalent with ease. Solvency is the…

Q: Explain why financial analyst are interested in liquidity and solvent ratios

A: Liquidity Ratios help in determining the ability to pay its short-term obligations, whereas Solvency…

Q: Briefly explain the following; (i) Time value of money (ii)        Investment decision (iii)…

A: Finance is considered as the life blood of an organisation. It is necessary to manage finance in…

Q: Explain Net Income versus Cash Flow?

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: What is the mathematical formula of dollar duration of equity and how do you derive it?

A: Dollar duration of equity is a financial metric used to measure the sensitivity of the market value…

Q: Which of the following is NOT one of the ratios in Internal Liquidity group? Select one: O a. Quick…

A: The liquidity ratios helps to know about the capability of the business to pay off its liabilities…

Q: Which financial statement is the most important one? Explain.

A: The objective of this question is to identify the most important financial statement and explain why…

Q: Which of the following are techniques, tools or methods of analysis and interpretation of financial…

A: Comparative analysis means the comparison of financial statements across different years or…

Q: Explain the importance of financial ratio analysis, including the importance or relevance of…

A: Its a way to conduct a company's financial health check.  Suppose you are the investor and you are…

Q: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

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.