MODIFIED MATCHING TYPE: From the financial ratios listed in the box, group the financial ratios as to profitability, operational efficiency, and financial health ratios. ROA Current Ratio Quick Ratio ROE Gross Profit Margin Debt to Equity Ratio Days in Inventory Net Profit Margin Fixed Asset Turnover Debt Ratio Accounts receivable turnover Interest coverage ratio Asset Turnover
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- 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)Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection PeriodWhich one of the following ratios is relevant to assess long-term solvency? A. Current Ratio B. Debt-Service Coverage Ratio C. Return on Equity D. Profit Margin
- Financial Statement Analysis Compute for Profitability Ratio with Substantial Analysis: a. Gross Profit Margin b. Profit Margin c. Return on Total Assets d. Return on Equityb. Compute the following Ratios: iv. Average Collection period v. Profit Margin vi. Debt to Total Assets vii. Return on Asset viii. Times Interest Earned Explain to the Manager, what the different classes of ratios measure and identify the bases of comparison on financial information. C.Discuss the following profitability ratios: Profit Margin, ROA-Return on Assets, ROI-Return on Investment, and the Gross Margin.
- Present formulas and examples of the following financial ratios (Financial ratios)a. gross marginb. profit margin on salesc. return on equity (ROE)Discuss the impact of the following ratios and usefulness to users of financial statements. Gross profit Margin Return on capital employed Operating profit (PBIT) percentage Asset turnover Gearing ratioDefine 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
- Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio b. Gross profit margin c. Return on Assets d. Operating profit marginWhich of the following best describes the current ratio? a) Liquidity ratio b) Debt ratio c) Operating performance ratio d) Efficiency ratioPrepare the following Ratio Analysis: 1. Liquidity ratio 2. Activity ratio 3. Solvency Ratio 4. Profitability Ratio