Efficiency ratios are measures of:
a) Financial flexibility
b) liquidity
c) operation capability .
d) leverage.
Answer: c) Operation capability
Efficiency ratios measure how efficiently a firm is able to manage its assets. Therefore, these ratios of inventory turnover, receivables turnover and total asset turnover measure the operational efficiency of the firm in effectively managing its inventory, receivables, fixed assets and total assets.
Efficiency ratios are measures of: a) Financial flexibility b) liquidity c) operation capability . d) leverage.
Consider the 5 types of financial ratios discussed in chapter 4: Performance, Profitability, Efficiency, Leverage, and Liquidity measures. Identify a person or persons who would be interested in each of these ratios (it does not have to be the same person for all 5), and to what use they would put these ratios.
Internal Analysis of Marriott- calculations of relevant profit ratios, activity ratios, leverage ratios, liquidity ratios, and market ratios and any crucial financial information.
Which of the following ratios are correctly described as liquidity and solvency ratios? Liquidity Solvency A. Cash Current B. Current Debt to equity C. Debt to equity Financial leverage Group of answer choices Row C Row B Row A
The equity multiplier measures: Group of answer choices financial leverage. returns to stockholders. operating efficiency. management efficiency. asset use efficiency.
The firm's shareholders are most interested in which of the following ratios? Select one: a. Liquidity, activity, leverage ratios, profitability, and market ratios. b. Liquidity, leverage ratios, and profitability ratios. c. Leverage ratios, profitability, and market ratios. d. None of the above.
1) A sit and reach test measures a. hamstring flexibility. b. lower back flexibility. c. shoulder flexibility. d. All of the above. e. A and B only. 2) All of the following instructions should apply to a traditional sit and reach test except: a. All of the following instructions should apply to a traditional sit and reach test except: b. hands should be placed one on top of the other. c. knees should be maintained in a straight position. d....
How do you evaluate each of the four groups of financial ratios, including liquidity ratios, asset efficiency (asset management) ratios, capital structure (solvency) ratios, profitability ratios, and market value ratios? Use examples to describe formulas, explain calculation steps and sources of data (input from which financial statement—income statement or balance sheet), and state final answers.
What do the liquidity ratios tell you in the financial analysis? 1. The capital structure of a company 2. The profitability of the company 3. The efficiency of inventory 4. The company’s ability to pay off debt obligations 5. Ratios analysis
Which of the following ratios are used as an indicator of financial leverage (select all that apply)? A. ROA B. Debt/EBITDA C. EBIT/Interest D. Debt/Capitalization
The balance sheet provides information about each of the following items, except: a. operating capability of entity. b. results of entity's operations. c. entity's liquidity. d. financial flexibility of entity. 1 points QUESTION 7 Which of the following is never a current liability account? a. accrued payroll. b. dividends payable. c. prepaid rent. d. subscription collected in advance. 1 points QUESTION 8 Which of the following should be disclosed in the Summary of Significant Accounting Policies? a. Rent...