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.
Maverick Technologies has sales of $ 3,000,000. The company's fixed operating costs total $548, 438 and its variable costs equal 60% of sales. The company's interest expense is $ 500,000. What is the company's degree of total leverage (DTL)? Answer to 2 decimal places.
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