Question

All of the following are profitability ratios except

A. Profit margin B. Payable turnover C. Asset turnover D. Return on assets

Answer #1

ANSWER IS "B" PAYABLE TURNOVER RATIO

The accounts payable turnover ratio is a short-term liquidity measure used to quantify the rate at which a company pays off its suppliers. Accounts payable turnover ratio is calculated by taking the total purchases made from suppliers, or cost of sales, and dividing it by the average accounts payable amount during the same period.

TOTAL SUPPLIER PURCHASE / AVERAGE ACCOUNT PAYABLES

From the given options you can also observe that profit margin ration,asset turnover ratio and return on assets are inflows to a business they are profits on our investments whereas payable ratio is a outflow

therefore payable ratio is not a profitability ratio

Compute Profit margin, current ratio, debt to asset, and asset
turnover ratios.
Balance Sheet
As on April 30
$
$
ASSETS
Lanscaping Equipment
15,000
Cash
55,300
Prepaid Insurance
3,300
Landscaping supplies
300
Accounts Receivable
600
Total Assets
74,500
Equity and Liabilities
Equity
Common Stock
50,000
Retained Earnings
20,750
Total Equity
70,750
Liabilities
Accounts Payable
3,750
Total Equity and Liabilities
74,500

Assume the following ratios are constant. Total asset turnover =
2.24 Profit margin = 5.2 % Equity multiplier = 1.71 Payout ratio =
49 % What is the sustainable growth rate?

Loreto Inc. has the following financial ratios: asset turnover =
2.60; net profit margin (i.e., net income/sales) = 4%; payout ratio
= 25%; equity/assets = 0.30.
a. What is Loreto's sustainable growth
rate?
b. What is its internal growth rate?

Loreto Inc. has the following financial ratios: asset turnover =
1.60; net profit margin (i.e., net income/sales) = 6%; payout ratio
= 25%; equity/assets = 0.80.
a. What is Loreto's sustainable growth
rate?
b. What is its internal growth rate?

Assume the following ratios are constant: Total asset turnover 2
Profit margin 5.1 % Equity multiplier 1.2 Payout ratio 25 % What is
the sustainable growth rate?

Assume the following ratios are constant.
Total asset turnover 1.43
Profit margin 9.1%
Equity multiplier 1.8
Payout ratio 67%
What is the sustainable growth rate?

Assume the following ratios are constant. Total asset turnover =
2.30 Profit margin = 5.8 % Equity multiplier = 1.77 Payout ratio =
35 % What is the sustainable growth rate? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.) Sustainable growth
rate

Assume the following ratios are constant.
Total asset turnover
=
2.23
Profit margin
=
5.1
%
Equity multiplier
=
1.70
Payout ratio
=
48
%
What is the sustainable growth rate? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Sustainable growth rate ________ %

Assume the following ratios are constant:
Total asset turnover
2.50
Profit margin
5.4
%
Equity multiplier
1.30
Payout ratio
35
%
What is the sustainable growth rate? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)

for an all equity firm with a total asset turnover of 1.6, what
profit margin would achieve a target ROE of 0.29? Conver the profit
margin rate to a percent

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