The percent of fixed assets to total assets is an example of:
profitability analysis
vertical analysis
solvency analysis
horizontal analysis
Ratio Analysis: It is a technique by which the financial position of a company is analyzed. This technique involves computing different ratios in order to compare the current position of the company with an earlier period or to evaluate the current position.
Vertical Analysis: It is the technique of financial statement analysis which reflects each item of the financial statement as a percentage of base amounts of the financial statement.
Assets: It can be defined as the resources owned by the organization which is capable of providing some future benefits. On the basis of duration of time assets are of two types which are 1. Current Assets and 2. Fixed Assets
Profitability Analysis: Profitability analysis is the technique of financial statement analysis which reflects the analysis of profitability of the organization’s output.
Solvency Analysis: Solvency Analysis is the technique of financial statement analysis which reflects the company ability to pays its debts and interest on such debts.
Horizontal Analysis: Horizontal analysis is a comparison of financial data for several years against a base year. It is a study of percentage changes in the items of the financial statement, such analysis provides useful information to an organization.
The ratio of fixed assets to total assets does not show the profitability analysis as it does not use any output or sales.
The ratio of fixed assets to total assets does not show the solvency analysis as the solvency deals with the debts of the company.
The ratio of fixed assets to total assets does not show the horizontal analysis as it does not shows any comparison with the previous data.
The ratio of fixed assets to total assets shows the vertical analysis as show the percentages of fixed assets in comparison to total assets.
Ans:The ratio of fixed assets to total assets shows the vertical analysis.
The percent of fixed assets to total assets is an example of: profitability analysis vertical analysis...
Discuss the horizontal and vertical analysis of a financial statement, and how each is used to help financial statement users make better decisions. Explain the liquidity, solvency, and profitability ratios introduced throughout the text. Describe how the ratios are used in analyzing a firm’s liquidity, solvency, and profitability.
Expressing accounts receivable as a percentage of total assets is an example of?? I'm not sure if it is ratio analysis or not. QC12-5 (similar to) Expressing accounts receivable as a percentage of total assets is an example of O A. trend analysis. O B. ratio analysis. OC. vertical analysis. O D. horizontal analysis.
What do profitability ratios represent? Give an example of one of them What do liquidity ratios represent? Give an example of one of them What do solvency ratios represent? Give an example of one of them What base amount is used for horizontal analysis of both income statement and balance sheets? Give an example.
Solvency and Profitability ratio of AT&T Fixed Assets to L/T Debt 2017 was 0.37 and 0.33 for 2018. Times Interest Earned 2017 was 3.40 and in 2018 was 4.13. Assets Turnover in 2017 was 0.3615 and in 2018 was 0.3211.Gross Margin for 2017 was 51.80% and for 2018 was 53.49%.P/E ratio for 2017 was 7.58 and 2018 was 9.78. Verizon Communicationd Inc Fixed Assets to L/T Debt in 2017 was 0.46 and 0.43 in 2018. Times Interest Earned in 2017...
1) How is working capital calculated? a. current assets * current liabilities b. current assets minus current liabilities c. current assets plus current liabilities d. current assets / current liabilities 2) Which of the following evaluates data over a period of time? a. ratio analysis b. financial analysis c. vertical analysis d. horizontal analysis 3) Which of the following applies to ratio analysis? a. it uses financial statement data from the same accounts and compares it to different years b....
Long-Term Solvency Analysis The following information was taken from Acme Company's balance sheet: Fixed assets (net) $1,287,400 Long-term liabilities 314,000 Total liabilities 989,100 Total stockholders' equity 1,099,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity
Long-Term Solvency Analysis The following information was taken from Charu Company's balance sheet: Fixed assets (net) $910,000 Long-term liabilities 260,000 Total liabilities 800,000 Total stockholders’ equity 320,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity
Chapter 13: Analysis of Financial Statements In horizontal analysis of an income statement, a company reported sales of $50.000 at the end of Year 1 ar $40,000 at the end of Year 2. The percentage change in sales, using Year 1 as the base year, is a A 25% increase B. 25% decrease C. 20% increase D. 20% decrease In vertical analysis of a balance sheet, each asset amount is stated as a percent of A. total liabilities B. total...
Calculator Profitability Ratios Current Year Prior Year Total Assets $ 1,810,236 $ 1,659,152 Total Liabilities $ 669,328 $ 759,244 Total Equity $ 1,140,908 $ 899,908 Shares Shares Preferred Stock 10,850 9,850 Common Stock 45,928 45,928 Market Price-Common Stock $ 42.67 Net Income $ 150,000 Interest Expense $ 20,000 Preferred Dividends $ 9,000 Calculate the following for the Current Year based on the information abo (Round percent to one place past the decimal. Do not enter % symbol. Example: ROA (Return...
Return on assets a. measures overall profitability of total assets b. all are correct c. is a profitability ratio d. is calculated: net income divided by average total assets