Which of the following ratios is used to evaluate the company's long-term paying ability? A. Debt...
Which of the following ratios is used to evaluate the company's long-term paying ability?
A. Debt to asset ratio
B. Inventory turnover
C. Current ratio
D. Return on equity
Homework Answers
|
Option A Debt to asset ratio |
|
| Generally, Solvency ratios measure the long term paying ability of an entity. Debt to assets ratio measures the amount of assets which are financed through debt |
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Which of the following ratios is used to evaluate the company's
long-term paying ability?
A. Debt...
Question 7 Which of the following statements is true? Liquidity ratios measure a company's long-term ability...
Which of the following statements is true? Liquidity ratios measure a company's long-term ability to pay debt. Solvency ratios measure a company's ability to repay current debt. A high liquidity ratio generally indicates that a company has a greater ability to meet its current obligations. Solvency ratios measure a company's ability to survive on a short-term basis.
1) Which of the following ratios would be used to access a company’s ability to survive...
1) Which of the following ratios would be used to access a company’s ability to survive a four-year cyclical business downturn? a. Long-term debt to equity ratio b. Quick ratio c. Times interest earned d. Return on assets 2) Which of the following ratios would be best used to access the performance of company management in increasing shareholder wealth? a. Gross profit margin b. Economic Value Added c. Dividend yield d. Book value 3) What is the ABC Company’s coverage...
Which of the following ratios helps evaluate a company's ability to make interest payments as they...
Which of the following ratios helps evaluate a company's ability to make interest payments as they come due? A. EBIT/Interest B. ROA C. None of these D. Total Debt/Capitalization
6 Which financial leverage ratio is used with two other ratios to mathematically produce the return...
6 Which financial leverage ratio is used with two other ratios to mathematically produce the return on equity ratio? Debt/ Equity Total Liabilities/(Equity - Intangible Assets) Total Assets/ Equity Total Liabilities/Equity 17 Which of the following is a tertiary ratio that drives profitability? SG&A Expense/Sales Net Profit/Sales EBIT /Sales EBIT /Net Profit 18 Which ratios indicate how efficiently the company is in generating sales from the company's assets? Net profit ratio Solvency ratio Quick asset ratio Working capital turnover 19...
Large Limb Photo Shop has asked you to determine whether the company's ability to pay current...
Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2016. To answer this question, you gather the following data EEE (Click the icon to view the data.) Compute the following ratios for 2016 and 2015. and evaluate the company's ability to pay its current liabilities and total liabilities: a. Current ratio b. Cash ratio c. Acid-test ratio d. Debt ratio Debt to equity ratio e....
which of the following is true regarding asset management ratios Which of the following is true...
which of the following is true regarding asset management
ratios
Which of the following is true regarding Asset Management Ratios? I. They measure the company's ability to use its assets to pay debt. II. They include inventory turnover, receivables turnover, and asset turnover. II. They measure how efficiently a company uses its assets to generate sales. IV. They measure the company's ability to generate earnings. Select one: a. I only. b. I and Il only. c. Il only. d. II...
This category of ratios considers a company's ability to produce returns from their operational performance: Liquidity...
This category of ratios considers a company's ability to produce returns from their operational performance: Liquidity Efficiency Solvency O Profitability Which of the following ratios measures how quickly cash is collected from customers sold to on credit? Current ratio O Quick ratio Accounts receivable turnover Times interest earned Question 8 (1 point) Analysis of one single number is of great value. True False Question 9 (1 point) Which of the following ratios shows the relationship of a businesses sources of...
Which of the following would be considered liquidity or short-term solvency ratios? quick ratio; cash ratio....
Which of the following would be considered liquidity or short-term solvency ratios? quick ratio; cash ratio. quick ratio; times interest earned ratio (TIE). current ratio; long-term debt ratio. current ratio; inventory turnover ratio;
Use the following ratios for Pepsi to evaluate the company's 2019 performance relative to its 2018...
Use the following ratios for Pepsi to evaluate the company's 2019 performance relative to its 2018 performance in each of the areas requested. Be sure to identify the ratios used for each area and support your evaluation with the ratio values and their relationship (5 points each) Ratio December 2019 December 2018 Average colection period 42751 days 4032 days Current ratio 0 86 times 099 times Debt ratio 8107% 81 19% Inventory turnover 903 times 939 times Net profit margin...
Essay: Explain what each of the ten ratios mean and how cach should be used to evaluate the financial health of th...
Essay: Explain what each of the ten ratios mean and how cach should be used to evaluate the financial health of the company (250-300 words). 1. Liquidity Current Ratio 2. Activity Average Collection Period Total Asset Turnover 3. Debt Debt Ratio Times Interest Earned 4. Profitability Net Profit Margin (NPM) Return of Assets (ROA) Return on Equity (ROE) Earnings Per Share (EPS) 5. Market Ratios Price/Earning (PE) Ratio
6 Which financial leverage ratio is used with two other ratios to mathematically produce the return on equity ratio? Debt/ Equity Total Liabilities/(Equity - Intangible Assets) Total Assets/ Equity Total Liabilities/Equity 17 Which of the following is a tertiary ratio that drives profitability? SG&A Expense/Sales Net Profit/Sales EBIT /Sales EBIT /Net Profit 18 Which ratios indicate how efficiently the company is in generating sales from the company's assets? Net profit ratio Solvency ratio Quick asset ratio Working capital turnover 19...
Large Limb Photo Shop has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2016. To answer this question, you gather the following data EEE (Click the icon to view the data.) Compute the following ratios for 2016 and 2015. and evaluate the company's ability to pay its current liabilities and total liabilities: a. Current ratio b. Cash ratio c. Acid-test ratio d. Debt ratio Debt to equity ratio e....
which of the following is true regarding asset management
ratios
Which of the following is true regarding Asset Management Ratios? I. They measure the company's ability to use its assets to pay debt. II. They include inventory turnover, receivables turnover, and asset turnover. II. They measure how efficiently a company uses its assets to generate sales. IV. They measure the company's ability to generate earnings. Select one: a. I only. b. I and Il only. c. Il only. d. II...
This category of ratios considers a company's ability to produce returns from their operational performance: Liquidity Efficiency Solvency O Profitability Which of the following ratios measures how quickly cash is collected from customers sold to on credit? Current ratio O Quick ratio Accounts receivable turnover Times interest earned Question 8 (1 point) Analysis of one single number is of great value. True False Question 9 (1 point) Which of the following ratios shows the relationship of a businesses sources of...
Use the following ratios for Pepsi to evaluate the company's 2019 performance relative to its 2018 performance in each of the areas requested. Be sure to identify the ratios used for each area and support your evaluation with the ratio values and their relationship (5 points each) Ratio December 2019 December 2018 Average colection period 42751 days 4032 days Current ratio 0 86 times 099 times Debt ratio 8107% 81 19% Inventory turnover 903 times 939 times Net profit margin...
Essay: Explain what each of the ten ratios mean and how cach should be used to evaluate the financial health of the company (250-300 words). 1. Liquidity Current Ratio 2. Activity Average Collection Period Total Asset Turnover 3. Debt Debt Ratio Times Interest Earned 4. Profitability Net Profit Margin (NPM) Return of Assets (ROA) Return on Equity (ROE) Earnings Per Share (EPS) 5. Market Ratios Price/Earning (PE) Ratio
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