Which of the following ratios will not increase when net income increases? A. Return on equity...
Which of the following ratios will not increase when net income increases?
A. Return on equity
B. Net profit margin.
C. Return on assets.
D. Gross profit percentage
Homework Answers
Gross profit percentage will not increase when net income increases.
Because net income is calculated after gross profit, therefore gross profit percentage will have no impact.
Option D is correct.
Add Answer to:
Which of the following ratios will not increase when net income
increases?
A. Return on equity...
Return on equity can increase as a result of an increase in which of the following...
Return on equity can increase as a result of an increase in which of the following ratios? Net income/ sales Sales/ total assets Total assets/ equity All of these will have a positive influence on the ROE.
Help solve for asset turnover, return on common stockholders equity, and gross profit rate ratios. Thank...
Help solve for asset turnover, return on
common stockholders equity, and gross profit rate ratios. Thank
you
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 2019 $4,950 3,501 75 65 1,150 2,950 971 2018 $5,701 3,801 171 103 1,350 3,250 1,141...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...
Compare and analyze ratios of two companies. Profitability ratios Dec 31, 2018 Return on Sales Gross...
Compare and analyze ratios of two companies.
Profitability ratios Dec 31, 2018 Return on Sales Gross profit margin Operating profit margin 63.05% 27.31% 20.20% Net profit margin Return on Investment Return on equity (ROE) Return on assets (ROA) 37.89% 7.73% Dec 29, 2018 Return on Sales 54.56% Gross profit margin Operating profit margin Net profit margin 15.64% 19.35% Return on Investment Return on equity (ROE) 86.20% Return on assets (ROA) 16.12%
An increase in which of the following must increase the return on equity, all else constant?...
An increase in which of the following must increase the return on equity, all else constant? A. Net income and total equity B. Debt-equity ratio and total debt C. Total assets and sales D. Equity multiplier and total equity E. Total asset turnover and debt-equity ratio
All other things being equal, an increase in the interest rate that the company must pay...
All other things being equal, an increase in the interest rate that the company must pay on its long term debt will have an impact on which of the following ratios? a) Return on equity (ROE). V Net Income Alorage SE. b) Return on total assets (ROA) NI + Interest Expense xl- Tax Rate Net profit margin percentage- Average d) a) and b). Total Assets / Net Incomev a) and c). Net Sales
UNCLUT I LULL 12. Return on common equity 13. Gross profit margin Note: For ratios that...
UNCLUT I LULL 12. Return on common equity 13. Gross profit margin Note: For ratios that call for using average balance sheet figures, compute the rates average balance sheet figures and year-end balance sheet figures. b. Briefly comment on profitability and trends indicated in profitability. Also commento difference in results between using the average balance sheet figures and year end figures P 8-13 Required Answer the following multiple-choice questions: a. Which of the following is not considered to be a...
11. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios,...
11. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Consider the following scenario: Your boss has asked you to calculate the profitability ratios of Cute Camel Woodcraft Company and make comments on its second-year performance as compared to its first-year performance. The following shows Cute Camel’s income statement for the last two years. The company had assets of $5,875,000...
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios,...
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm Your boss has asked you to calculate the profitability ratios of Petroxy Oil Co. and make comments on its second-year performance as compared to its first-year performance The following shows Petroxy Oil Co.'s income statement for the last two years. The company had assets of $4,700 million in the first...
Profitability ratios
Decision makers and analysts look deeply into profitability ratios to identify trends in a company’s profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply.A higher operating margin than the industry average indicates either lower operating costs, higher product pricing, or both.If a company’s operating margin increases but its profit margin decreases, it could mean that the...
Return on equity can increase as a result of an increase in which of the following ratios? Net income/ sales Sales/ total assets Total assets/ equity All of these will have a positive influence on the ROE.
Help solve for asset turnover, return on
common stockholders equity, and gross profit rate ratios. Thank
you
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 2019 $4,950 3,501 75 65 1,150 2,950 971 2018 $5,701 3,801 171 103 1,350 3,250 1,141...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...
Compare and analyze ratios of two companies.
Profitability ratios Dec 31, 2018 Return on Sales Gross profit margin Operating profit margin 63.05% 27.31% 20.20% Net profit margin Return on Investment Return on equity (ROE) Return on assets (ROA) 37.89% 7.73% Dec 29, 2018 Return on Sales 54.56% Gross profit margin Operating profit margin Net profit margin 15.64% 19.35% Return on Investment Return on equity (ROE) 86.20% Return on assets (ROA) 16.12%
All other things being equal, an increase in the interest rate that the company must pay on its long term debt will have an impact on which of the following ratios? a) Return on equity (ROE). V Net Income Alorage SE. b) Return on total assets (ROA) NI + Interest Expense xl- Tax Rate Net profit margin percentage- Average d) a) and b). Total Assets / Net Incomev a) and c). Net Sales
UNCLUT I LULL 12. Return on common equity 13. Gross profit margin Note: For ratios that call for using average balance sheet figures, compute the rates average balance sheet figures and year-end balance sheet figures. b. Briefly comment on profitability and trends indicated in profitability. Also commento difference in results between using the average balance sheet figures and year end figures P 8-13 Required Answer the following multiple-choice questions: a. Which of the following is not considered to be a...
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm Your boss has asked you to calculate the profitability ratios of Petroxy Oil Co. and make comments on its second-year performance as compared to its first-year performance The following shows Petroxy Oil Co.'s income statement for the last two years. The company had assets of $4,700 million in the first...
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