Question

For each of the following financial statement ratios, identify whether the ratio provides analysis regarding a...

For each of the following financial statement ratios, identify whether the ratio provides analysis regarding a firms:

Profitability

Liquidity

Solvency

Common stockholder valuation

Earnings Per Share (EPS)

Quick ratio

Gross profit percentage (or margin)

Dividend Yield

Price to Earnings ratio

Accounts receivable turnover

Operating cash flow to current liabilities ratio

Days' sales in inventory

Debt to Equity ratio

Return on sales

Return on assets

Current ratio
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Homework Answers

Answer #2

1. Earnings per share: Common stockholder valuation

2. Quick ratio: Liquidity

3. Gross Profit percentage: Profitability

4. Dividend yield : Common stockholder valuation

5. Price to earnings ratio: Common stockholder valuation

6. Accounts receivable turnover ratio: Liquidity

7. Operating cash flow to current liabilities ratio : Solvency

8. Days' sales in inventory: Liquidity

9. Debt to Equity ratio: Solvency

10. Return on sales: Profitability

11. Return on assets : Profitability

12. Current ratio: Liquidity

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