The financial ratios which address the question: Has the firm earned adequate returns on its investments? O Efficiency ratios O Liquidity ratios O Profitability ratios O Working Capital ratios -
The financial ratios which address the question: Has the firm earned adequate returns on its investments? O Efficiency ratios O Liquidity ratios O Profitability ratios O Working Capital ratios -
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2Q: Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and...
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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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![The financial ratios which address the question: Has the firm earned adequate returns on its investments?
O Efficiency ratios
O Liquidity ratios
O Profitability ratios
O Working Capital ratios.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8f34df7-83ba-4346-8818-95ac2d374ac3%2F541f07df-6979-4ba6-bbfd-470eaedadfaf%2Fyh6v21k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The financial ratios which address the question: Has the firm earned adequate returns on its investments?
O Efficiency ratios
O Liquidity ratios
O Profitability ratios
O Working Capital ratios.
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