Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales O ii) ROA = ROE / Equity multiplier O iii) Capital intensity ratio = 1 / Return on assets iv) Quick ratio = Cash / Current liabilities
Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales O ii) ROA = ROE / Equity multiplier O iii) Capital intensity ratio = 1 / Return on assets iv) Quick ratio = Cash / Current liabilities
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2MC
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![Which one of the following formulas is correct?
O i) Profit margin = EBIT / Sales
ii) ROA = ROE / Equity multiplier
%3D
O ii) Capital intensity ratio = 1 / Return on assets
O iv) Quick ratio = Cash / Current liabilities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa2c23466-c1e2-444d-9366-2bf2bdd33ca7%2F739eb7b8-7700-4090-8e6c-450c320d41b9%2Fokrohrm_processed.png&w=3840&q=75)
Transcribed Image Text:Which one of the following formulas is correct?
O i) Profit margin = EBIT / Sales
ii) ROA = ROE / Equity multiplier
%3D
O ii) Capital intensity ratio = 1 / Return on assets
O iv) Quick ratio = Cash / Current liabilities
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