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Profitability ratios reflect the net result of all the firms erect. B policies and operating decisions. The profitability ra
A low ROA can result from a firms decision to use more debt because high interest expenses will cause net income to B. The b


Analysis of Financial Statements: Profitability Ratios Profitability ratios reflect the net result of all the firm profit mar
Analysis of Financial Statements: Profitability Ratios Profitability ratios reflect the net result of all the firms rett B p
t The net profit margin indicates what percentage of sales represen firms profitability. Its equation is: It measures the fi
B. It measures the firms combined impact of operating ciency The net profit margin indicates what percentage of sales repres
The return on total assets (ROA) measures the return on all the firms asse t interest and taxes. Its equation is:
A low ROA can result from a firms decision to use more debt because high interest expenses will cause net income earning pow
A low ROA can result from a firms decision to use more debt because high interest expenses will cause net income to Select B
The return on common equity (ROE) measures the retum investment. Its equation is: Select long-term debthers short-term debth


sis of Financial Statements: Profitability Ratios cability ratios reflect the net result of all the firm margin, (3) Return o
Profitability Ratios esult of all the firms -Select- policies and operating decisions. The profitability ratios include t et
. It measures the firms combined impact of operating efficie in indicates what percentage of sales represent its equation is
on the mpact of operating efficiency arv -Select- cash equity leverage
Its equation is: total assets (ROA) measures the return on all the firms asse Select before interest and taxes. Its equation
on to use more debt because high interest expenses will cause net income taxes and debt and is useful for comparing firms wit
A low ROA can result from a firms decision to use more debt because high interest expenses will cause net income to Select D
investment. Its equation is: non equity (ROE) measures the return ov -Select- long-term debtholders short-term debtholders
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Answer #1

a) firm's Net revenues policies

b) net sales remain after budegting

c) sales represents net income, efficiency and Cash

d) before interest and taxes

e) to decline, before interest

f) common stock holders investment

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