Terminology Matching Profitability Ratios Rationalization Return on Assets Ratio Return on Common Stockholders' Equity Ratio Sarbanes-Oxley Act Solvency Ratios Sustainable Income The Human Element Times Interest Earned Vertical Analysis A measure of company's solvency and ability to meet interest payments as they come due, calculated as the sum of net income, interest expenses and income tax expense divided hv interest expense This is a profitability measure that indicates the amount of net income generated by each dollar of assets. It is computed as net income divided hv averane total acepte A technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount Fatigue, carelessness, indifference, collusion Measures of the ability of a company to survive over a long period of time A measure of the dollars of net income earned for each dollar invested by the owners; computed as income available to common stockholders divided hv average common stockholder's equity Employee justifies fraud because they believe they are underpaid while the employer makes a huge profit Measures of the income or operating success of a company for a given period of time All publicly traded U.S. corporations are required to maintain an adequate system of internal control. Corporate executives must ensure the that these controle are reliable and effective Alen Independent The most likely level of income to be obtained by a company in the future
Terminology Matching Profitability Ratios Rationalization Return on Assets Ratio Return on Common Stockholders' Equity Ratio Sarbanes-Oxley Act Solvency Ratios Sustainable Income The Human Element Times Interest Earned Vertical Analysis A measure of company's solvency and ability to meet interest payments as they come due, calculated as the sum of net income, interest expenses and income tax expense divided hv interest expense This is a profitability measure that indicates the amount of net income generated by each dollar of assets. It is computed as net income divided hv averane total acepte A technique for evaluating financial statement data that expresses each item in a financial statement as a percentage of a base amount Fatigue, carelessness, indifference, collusion Measures of the ability of a company to survive over a long period of time A measure of the dollars of net income earned for each dollar invested by the owners; computed as income available to common stockholders divided hv average common stockholder's equity Employee justifies fraud because they believe they are underpaid while the employer makes a huge profit Measures of the income or operating success of a company for a given period of time All publicly traded U.S. corporations are required to maintain an adequate system of internal control. Corporate executives must ensure the that these controle are reliable and effective Alen Independent The most likely level of income to be obtained by a company in the future
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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.
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Terminology Matching
Profitability Ratios
Rationalization
Return on Assets Ratio
Return on Common Stockholders' Equity Ratio
Sarbanes-Oxley Act
Solvency Ratios
Sustainable Income
The Human Element
Times Interest Earned
Vertical Analysis
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A measure of company's solvency and ability to meet interest payments
as they come due; calculated as the sum of net income, interest
expenses and income tax expense divided by interest expense
This is a profitability measure that indicates the amount of net income
generated by each dollar of assets. It is computed as net income
divided hv average total assets
A technique for evaluating financial statement data that expresses each
item in a financial statement as a percentage of a base amount
Fatigue, carelessness, indifference, collusion
Measures of the ability of a company to survive over a long period of
time
A measure of the dollars of net income earned for each dollar invested
by the owners; computed as income available to common stockholders
divided by averane common storkholder's enuity
Employee justifies fraud because they believe they are underpaid while
the employer makes a huge profit
Measures of the income or operating success of a company for a given
period of time
All publicly traded U.S. corporations are required to maintain an
adequate system of internal control. Corporate executives must ensure
the that these controls are reliable and effective Alen Independent
The most likely level of income to be obtained by a company in the
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