Riggins Trucking, Inc. has a current stock price of $41. For the past year, the company had a net income of $5,150,000, total equity of $21,580,000, sales of $39,000,000, and 4.1 million shares of stock outstanding. What is the price-sales ratio? What do market ratios measure? Want detailed answer

Riggins Trucking, Inc. has a current stock price of $41. For the past year, the company had a net income of $5,150,000, total equity of $21,580,000, sales of $39,000,000, and 4.1 million shares of stock outstanding. What is the price-sales ratio? What do market ratios measure? Want detailed answer

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

See similar textbooks

Similar questions

Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2 (round to one decimal place, including percentages, except for per-share amounts): 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was 82.60 on December 31, 20Y2. Instructions Determine the following measures for 20Y2, rounding to one decimal place, including percentages, except for per-share amounts: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days sales in receivables 6. Inventory turnover 7. Number of days sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders equity 10. Times interest earned 11. Asset turnover 12. Return on total assets 13. Return on stockholders equity 14. Return on common stockholders equity 15. Earnings per share on common stock 16. Price-earnings ratio 17. Dividends per share of common stock 18. Dividend yield
Riggins Trucking, Inc. has a current stock price of $41. For the past year, the company had a net income of $5,150,000, total equity of $21,580,000, sales of $39,000,000, and 4.1 million shares of stock outstanding. What is the price-sales ratio? What do market ratios measure? Want detailed answer
What is the price sales ratio?
Ames, Inc., has a current stock price of $58. For the past year, the company had a net income of $8,400,000, total equity of $25,300,000, sales of $52,800,000, and 4.6 million shares of stock outstanding. a. What are earnings per share (EPS)? b. What is the Price-earnings ratio? c. What is the Price sales ratio? d. What is Book value per share?
Provide answer
Market Value Ratios Wilsons, Inc., has a current stock price of $64. For the past year, the company had net income of $9.1 million, total equity of $24.7 million, sales of $49.6 million in 4.9 million shares of stock outstanding. What are earnings per share (ESP)? Price earnings ratio? Price sales ratio? Book value per share? Market to book ratio?
(Analyzing market value) The balance sheet for Leo's Discount Tire Company shows a book value of stockholders' equity (book value per share x total shares outstanding) of $23,096,000. Furthermore, the firm's income statement for the year just ended has a net income of $512,000, which is $0.242 per share of common stock outstanding. The price-earnings ratio for firms similar to Leo's Discount Tire Company is 18.39. a. What price would you expect Leo's Discount Tire Company shares to sell for? b. What is the book value per share for Leo's shares? c. What does the market price and book value per share indicate about the firm? a. What price would you expect Leo's Discount Tire Company shares to sell for? The market price per share is $ (Round to the nearest cent.)
What is firm's price earnings ratio?
The following information is available for Jase Company: Market price per share of common stock $25.00 Earnings per share on common stock 1.25 Which of the following statements is correct? a. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year. b. The market price per share and the earnings per share are not statistically related to each other. c. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. d. The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year.