Answer:-
Short term lenders will be most interested in the firm’s ability to repay debt so they would be interested in the liquidity ratios, Current ratio and Quick ratio.
Short-term lenders LIQIDITY concern is with the firm’s ability to pay short-term obligations as they come due.
Long-term lenders–leverage ratios are concerned with the relationship of debt to total assets.Long-term lenders–leverage ratios will examine profitability to insure that interest payments can be made.
Stockholders–profitability ratios, with secondary consideration given to debt utilization, liquidity, and other ratios. Since stockholders are the ultimate owners of the firm, they are primarily concerned with profits or the return on their investment.
Profitability ratios
Profit margin
Return on assets
Return on equity
if we divide users of ratio into short term lenders, long term lenders and stockholders, in...
If we divide users of ratios into short-term lenders, long-term lenders, and stockholders, which ratios would each group be most interested in, and for what reasons? Explain how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down return on stockholders’ equity. If the accounts receivable turnover ratio is decreasing, what will be happening to the average collection period?
In 200 words, What type of ratios are short-term lenders, long-term lenders and stockholders are more interest in? Provide examples of financial ratios. Select one to expand and provide an example
Are short term creditors, long term creditors, and stockholders interested in primarily the same characteristics of a company? Explain
Ratio of Liabilities to Stockholders' Equity and Ratio of Fixed Assets to Long-Term Liabilities Recent balance sheet information for two companies in the food industry, Mondelez International, Inc. and The Hershey Company, is as follows (in thousands): Mondelez Hershey Net property, plant, and equipment $10,010,000 $1,674,071 Current liabilities 14,873,000 1,471,110 Long-term debt 15,574,000 1,530,967 Other long-term liabilities 12,816,000 716,013 Stockholders' equity 32,215,000 1,036,749 a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place....
13. Short-term versus long-term financing Generally speaking, short-term debt is riskier than long-term debt, but it also has some advantages. In the following table, identify which type of funding (short-term debt or long-term debt) is being described in each case. Short-term Debt Long-term Debt This loan has more covenants that restrict the firm's actions. This loan is more flexible and can be used to adapt to changing market conditions. The lender will insist on a more thorough financial examination before...
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;
What impact would this change from a long-term to a short-term relationship have on the investments that students make in their relationship with the university? How could the students protect themselves in this situation? Are there any reasons why the universities may prefer to keep their relationships with their students as a long-term commitment?
What impact would this change from a long-term to a short-term relationship have on the investments that students make in their relationship with the university? How could the students protect themselves in this situation? Are there any reasons why the universities may prefer to keep their relationships with their students as a long-term commitment?
Which bond would have more interest rate risk: a long-term bond or short-term bond? Why? Will there be other risks in these bonds? If possible, please give numeric example.
The four key users of financial statements are owners/managers, lenders, investors and governments. These users rely on financial statements to evaluate a company’s past financial performance as indicators in areas of profitability, liquidity, leverage, and efficiency; to create benchmarking matrixes; and to support future decision-making. Choose two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. Share your analysis and answer the following questions in a minimum of...