Which of the following ratios would indicate how well the company is meeting its debt obligations?
current ratio |
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debt ratio |
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average collection period |
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times interest earned |
Current ratio is the ratio which helps to know the level at which firm is able to pay short term debts.
Thus, the correct option is a.
Which of the following ratios would indicate how well the company is meeting its debt obligations?...
Which of the following ratios would indicate if the company has too much loans? debt ratio average collection period current ratio Return on equity
QUESTION 4: Creditors would be most interested in which of the following ratios? times interest earned total asset turnover current ratio PE ratio QUESTION 6: Activity (turnover) ratios indicate the firm’s _________ ability. liquidation profit generating debt servicing sales generating QUESTION 7: Using the average inventory in the denominator of the inventory turnover ratio rather than using the year-end balance would be especially important for a firm with seasonal sales a firm with a high level of debt a company...
Question 2 To measure how long it takes customers to pay their balances we would look at the Question 2 options: a) Inventory turnover ratio b) Current ratio c) Average collection period d) Receivables turnover Question 3 A company with a decreasing interest expense would see what change to its times interest earned? Question 3 options: a) An increase b) A decrease c) No change d) Cannot be determined Question 4 As...
1.What do the ratios calculated below communicate about the
financial strengths and weaknesses of this company?
2.Based on your calculations, would you invest in this Company,
why or why not
Hlstorical Ratios Projected Ratlo 12/31/17 0.96 0.60 1.20 12/31/18 1.01 0.69 1.19 3.81 16 8.50 3.70 1.10 12/31/19 1.06 0.75 1.21 3.94 17 9.90 3.60 1.34 15 Current Ratio Quick Ratio Debt-to-Total-Assets Ratio Current Ratio Quick Ratic Total Debt-to-Total-Assets Ratio Total Debt-to-Equity Ratio Times-Interest-Earned Ratio Inventory Turnover Fixed Assets Turnover...
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
What do the ratios calculated below communicate about the
financial strengths and weaknesses of this company?
Based on your calculations, would you invest in this Company,
why or why not
Projected Ratlos 12/31/17 Historical Ratios 31/16 0.95 0.56 1.18 3.79 Current Ratio Quick Ratio Total Debt-to-Total-Assets Ratio Total Debt-to-Equity Ratio Times-Interest-Earned Ratio Inventory Turnover Fixed Assets Turnover Total Assets Turnover Accounts Receivable Turnover Average Collection Period Gross Profit Margin % Operating Profit Margin % ROA % ROE % 0.83 0.50...
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;
3. Debt (or leverage) management ratiosCompanies have the opportunity to use varying amounts of different sources of financing, including internal and external sources, to acquire their assets, debt (borrowed) funds, and equity funds.Company A uses long-term debt to finance its assets, and company B uses capital generated from shareholders to finance its assets. Which company would be considered a financially leveraged firm?Company ACompany BWhich of the following is true about the leveraging effect?Under economic growth conditions, firms with relatively more leverage...
E10-16 Calculate liquidity and solvency ratios; discuss impact of unrecorded obligations on liquidity and solvency. (LO 7), AP Suppose McDonald's 2014 financial statements contain the following selected data (in millions). Current assets $ 3,416.3 Total assets 30,224.9 Current liabilities 2,988.7 Total liabilities 16,191.0 Interest expense $ 473.2 Income taxes 1,936.0 Net income 4,551.0 Instructions 1. Compute the following values and provide a brief interpretation of each. A. Working capital. B. Current ratio. C. Debt to assets ratio. D. Times interest...
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...