The table below provides EV/Sales and EV/EBITDA ratios for three generally comparable firms. Which of the following is least likely to explain why Firm A has lower ratios than the other two firms? Company EV/Sales and EV/EBITDA Company EV/Sales EV/EBITDA Firm A 1.3 4.9 Firm B 1.6 6.1 Firm C 1.5 5.8 The table below provides EV/Sales and EV/EBITDA ratios for three generally comparable firms. Which of the following is least likely to explain why Firm A has lower ratios than the other two firms? Company EV/Sales and EV/EBITDA Company EV/Sales EV/EBITDA Firm A 1.3 4.9 Firm B 1.6 6.1 Firm C 1.5 5.8 Firm A is undervalued. Firm A is performing poorly. Firm A leveraged. Firm A
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 table below provides EV/Sales and EV/EBITDA ratios for three generally comparable firms. Which of the following is least likely to explain why Firm A has lower ratios than the other two firms? Company EV/Sales and EV/EBITDA Company EV/Sales EV/EBITDA Firm A 1.3 4.9 Firm B 1.6 6.1 Firm C 1.5 5.8 The table below provides EV/Sales and EV/EBITDA ratios for three generally comparable firms. Which of the following is least likely to explain why Firm A has lower ratios than the other two firms? Company EV/Sales and EV/EBITDA Company EV/Sales EV/EBITDA Firm A 1.3 4.9 Firm B 1.6 6.1 Firm C 1.5 5.8 Firm A is undervalued. Firm A is performing poorly. Firm A leveraged. Firm A
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