Define gaining ratio and why is it calculated.

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: What is the carryover ratio? What parameters of the base does its value depend on?

A: Carryover Ratio The purpose of measuring the carryover ratio  is to determine the ratio which are…

Q: ecoral ansactio Ints, Preparing the ance She lai Balan ng the Current Ratio LO2-2, 2-4, 2-5 wing…

A: The ability of a business to pay its short-term financial commitments that are due within a year is…

Q: What are some steps that must be taken when using ratio analysis? What is the most important aspect…

A: To analyze the financial statements, ratio analysis is an important tool. Ratio analysis helps to…

Q: Set out and explain the function of the p/e ratio

A: P/E ratio is a vital valuation ratio used in relative valuation methods. The function of pe ratio…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: What is the P/D ratio? How can it be improved?

A: P/D ratio is more accurate way for anticipating what is really required. P/D ratio compares the…

Q: What is meant by internal benchmarking in ratio analysis

A: Internal benchmarking is a process in which a company or an organisation looks within its own…

Q: Village Shipping Inc. Income Statement Horizontal Analysis For the years ending December 31, 2014…

A: In ratio analysis we calculate the ratios of each year and a comparison is made between the result…

Q: What does the intrinsic value formula look like? Please explain the components of the formula.

A: Intrinsic value or the real value is the calculated value or anticipated value of a company’s stock…

Q: Profit and loss accounts: - Alpha £000's £000's 420,000 Beta £000's £000's Turnover 315,000 Cost of…

A: Return on capital employed (ROCE) is one of a financial ratio which helps to analyse the ability of…

Q: When is the Ratio method applicable? How about the Apportion method? Give situational example.

A: The Ratio method is applicable in order to the identification of the cost and time of the specific…

Q: What does the current ratio measure?

A: Ratios are the group of metrics which are used to measure the profitability as well as efficiency of…

Q: Define Profi tability ratios

A: A ratio is a tool used by management to analyze the effectiveness of various financial statements.…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…