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.
The Blue Moon Corporation has ending inventory of $450,000, account receivable of $390,000, and cost of goods sold for the year just ended was $2,700,000. The company's inventory turnover ratio is _______. Round it to two decimal places.
Step by step
Solved in 3 steps with 1 images
