Indicate the meaning of the ratios computed, is the business performing good or bad? RATIOS20212020201920182017Key RatiosDebt-to-Equity RatioDebt Ratio15.277436.4745 -118.43527.13355.20630.93500.96820.99770.87430.8372Long-term debt to EquityNon-current assets to Net worthCapitalization ratioCurrent liability ratio8.110419.8482 -70.69434.07143.200110.571725.9883 -80.34185.55984.59960.89020.95201.01430.80280.76190.46910.45580.40310.42930.3853Liquidity RaioCurrent ratioQuick ratio (acid-test ratio)0.80480.70280.80360.84890.80690.74200.64030.72240.79050.7404Cash ratio0.26230.17730.21520.35150.3002

While the ideal debt-to-equity ratio varies by sector, the general consensus is that it does not…

RATIOS 2021 2020 2019 2018 2017 Key Ratios Debt-to-Equity Ratio 15.2774 36.4745 -118.4352 7.1335 5.2063 Debt Ratio 0.9350 0.9682 0.9977 0.8743 0.8372 Long-term debt to Equity 8.1104 19.8482 -70.6943 4.0714 3.2001 Non-current assets to Net worth 10.5717 25.9883 -80.3418 5.5598 4.5996 Capitalization ratio Current liability ratio 0.8902 0.9520 1.0143 0.8028 0.7619 0.4691 0.4558 0.4031 0.4293 0.3853 Liquidity Raio Current ratio 0.8048 0.7028 0.8036 0.8489 0.8069 Quick ratio (acid-test ratio) 0.7420 0.6403 0.7224 0.7905 0.7404 Cash ratio 0.2623 0.1773 0.2152 0.3515 0.3002

RATIOS 2021 2020 2019 2018 2017 Key Ratios Debt-to-Equity Ratio 15.2774 36.4745 -118.4352 7.1335 5.2063 Debt Ratio 0.9350 0.9682 0.9977 0.8743 0.8372 Long-term debt to Equity 8.1104 19.8482 -70.6943 4.0714 3.2001 Non-current assets to Net worth 10.5717 25.9883 -80.3418 5.5598 4.5996 Capitalization ratio Current liability ratio 0.8902 0.9520 1.0143 0.8028 0.7619 0.4691 0.4558 0.4031 0.4293 0.3853 Liquidity Raio Current ratio 0.8048 0.7028 0.8036 0.8489 0.8069 Quick ratio (acid-test ratio) 0.7420 0.6403 0.7224 0.7905 0.7404 Cash ratio 0.2623 0.1773 0.2152 0.3515 0.3002

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: hich of the following elements of financial statements is most closely related to company…

A: Financial statements are important reports that provide financial data about a firm at a certain…

Q: Briefly describe the ratios that can be used to evaluate a company’s profitability.

Q: Explain the term Using Ratios to Make Business Decisions?

A: There is lots of information in the financial reports summed up in numbers. We might not have…

Q: Distributions of the net income of a business to its owners are called: O dividends O monetary unit…

A: Financial statement of the company is the written records of the performance of a company. It is…

Q: Describe the procedure of using Ratios to make Business Decisions?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What is the best accounting method?

A: Accounting Method: The accounting method is the method used for maintaining the books of accounts of…

Q: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: What is the name of the accounting concept in which revenue earned during the accounting period…

A: An accrual is a journal entry that is used to recognize revenues and expenses that have been earned…

Q: Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt…

A: Financial ratio can be defined as the accounting ratio which helps the business in evaluating the…

Q: When analyzing financial statements, creditors are more concerned with which of the following? a.…

A: Financial statement analysis: The process of analyzing the financial statements of a company to…

Q: How do we use Ratios to Make Business Decisions?

A: Ratios are helpful to evaluate the company's financial performances and financial position of the…

Q: How is a financial ratio analysis performed? Comparing two items in financial statements. Evaluating…

A: Performing a financial ratio analysis involves examining and interpreting various ratios derived…

Q: How can diff erences in accounting methods aff ect fi nancial ratio comparisons between companies,…

A: Financial Ratios of a Company affect the statement of affairs which also relates to risks,…

Q: In a financial statement or other financial forms, where do I find or how do I find: Net Income/…

A: Financial Statements are the official or formal records of the financial activities of the business.…

Q: Of the following departments, which are responsible for the following ratios? Finance, Sales, HR,…

A: Ratios are key indicators of the company's performance. It is minutely monitored by insiders as well…

Q: A) Why do we use ratios to compare companies? B) What are the main financial statements? C) What…

A: Ratios are used to compare companies because they provide a standard measure that can be used to…

Q: If a company shows a profit on its Income Statement, how will this affect (a) the Balance Sheet and…

A: Explanation - There are three statements of the organization which show different accounting…

Q: a. What do the accounting policies say in the annual report (footnotes) regarding the cost of…

A: Accounting policies are the policies and standards for the presentation of the financial transaction…

Q: How can we determine the net income from operations and then adjust the net income?

Q: Which financial statement would you look at to understand a company's revenues, cost of goods sold,…

A: The purpose of financial statements is to provide information about a company's operations and…

Q: which method of accounting is the better straight-line method or double-declining method

A: Under Straight Line Method Depreciation = ( Cost of Asset- Salvage Value ) / Useful life Under…

Q: Which of the following ratios best measures the profitability of a company?

A: Gross margin, current ratio, and net operating asset turnover are all important ratios for analyzing…

Q: What does the current ratio inform you about a company? A. The efficient use of assets. B. The…

A: Current Ratio : The current ratio is the relation between the current assets and current liabilities…

Q: The valuation method primarily used in the balance sheets of business entities is a. current exit…

A: Balance Sheet: It shows the financial position of the entity. All the assets and liabilities are…

Question

100%

Indicate the meaning of the ratios computed, is the business performing good or bad?

RATIOS
2021
2020
2019
2018
2017
Key Ratios
Debt-to-Equity Ratio
Debt Ratio
15.2774
36.4745 -118.4352
7.1335
5.2063
0.9350
0.9682
0.9977
0.8743
0.8372
Long-term debt to Equity
Non-current assets to Net worth
Capitalization ratio
Current liability ratio
8.1104
19.8482 -70.6943
4.0714
3.2001
10.5717
25.9883 -80.3418
5.5598
4.5996
0.8902
0.9520
1.0143
0.8028
0.7619
0.4691
0.4558
0.4031
0.4293
0.3853
Liquidity Raio
Current ratio
Quick ratio (acid-test ratio)
0.8048
0.7028
0.8036
0.8489
0.8069
0.7420
0.6403
0.7224
0.7905
0.7404
Cash ratio
0.2623
0.1773
0.2152
0.3515
0.3002

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What key financial aspects do accounting ratios measure?
How can we use ratios to make Business Decisions?
Business ratios of financial statements are generally categorized as one of the following areas, EXCEPT Select one: a. Leverage b. Profitability c. Net Present Value d. Liquidity e. Efficiency (or Activity)
Explain the meaning of the Accounting Period Assumption. Why the Accounting Period Assumption is important when analysing ratios.
Can ratio analysis describe a business properly?
Accounting type Question: The basis of income Measurement is A. Matching concept B. Accounting Period concept C. Money Measurement concept D. Cost concept
Kristen Lu purchased a used automobile for $25,100 at the beginning of last year and incurred the following operating costs: Depreciation ($25,100 ÷ 5 years) $ 5,020 Insurance Garage rent Automobile tax and license Variable operating cost $ 2,600 $ 1,300 $ 680 $ 0.14 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,020. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 24,000 miles last year. Compute the average cost per mile of owning and operating the car. Note: Round your answers to 2 decimal places. Average fixed cost per mile $ 0.40 Variable operating cost per mile Average cost per mile $ 0.14 $ 0.54 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What…
Financial ratios utilized to manage a business falling under the categories of profitability,asset utilization,liquidity,& debt utilization.
Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements? O liquidity O operating O activity O profitability
how will the economic situation impact accounting
Income statement represents the process to arrive at net profit through the firm's normal operation. True False
On an income statement, can a company report total revenues instead of net sales? Are these the same thing?