Question

What does the Debt Ratio measures?

Answer #1

Debt Ratio is a financial ratio that gives us the company's
assets (in terms of percentage) that are provided via debt.

Mathematically, It is the ratio obtained when total debt is divided
by total assets.

For example, a company with $3 million in total assets and $1 million in total liabilities would have a debt ratio of or 33.33%.

In a way, debt ratio measures the extent of a company's leverage.

Please do rate me and mention doubts, if any, in the comments section.

in your own words, what does each measure that current ratio,
debt to equity ratio and Return on equity ratio would tell us about
your company that is important to investors and creditors?

What are two commonly used measures of operating capability?
Select one:
a. Current ratio and quick ratio.
b. Inventory turnover and the accounts receivable turnover.
c. Debt ratio and equity ratio.
d. Return on Assets and Return on Equity.
e. Gross profit margin and profit margin.

Q9 to Q12- Write the formula for the following ratios and what
each ratio measures:
Return on equity (ROE)
Return on assets (ROA)
Gross profit
Gross margin
Profit margin (also called the “net profit margin”)
Asset turnover
Fixed-Asset Turnover
Inventory Turnover
Inventory Period (also called “days inventory
outstanding”)
Collection Period (also called “account receivable
period”)
Payables Period (also called “account payable period”)
Operating Cycle
Cash Conversion Cycle
Financial Leverage (also called “equity multiplier” )
Debt-to-assets ratio
Debt-to-equity ratio
Times interest...

Describe in 2 sentences what turnover ratio measures

What is the formula to the current ratio? What is the formula to
the debt ratio? What analytical value regarding the company do
these two ratios offer?

Which ratio measures the firm’s ability to pay current interest
and lease payments?
Multiple Choice
Total Assets turnover ratio
Time interest earned ratio
Debt ratio
Cash-flow-to-debt ratio
Current ratio

Compute Delta airline's debt to equity ratio at year end. How
does it compare to the industry? What does this tell you about the
company? (reference required to support the answer)

Fincher, Inc., has a total debt ratio of .42.
What is its debt–equity ratio? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Debt–equity ratio
times
What is its equity multiplier? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Equity multiplier
times

What are the unit contribution margin and the contribution
margin ratio? What do these measures reveal about a company's cost
structure?

9)
Calculating the debt-to-assets ratio measures how efficiently a
company is using its assets in the normal scope of business.
⊚ true
⊚ false
10) In a
market, creditors are resource providers.
⊚ true
⊚ false
11) A high
debt-to-asset ratio may indicate that a company has a high level of
debt risk.
⊚ true
⊚ false
12)
Manhattan Company recorded an adjusting entry to accrue interest
owed of $300 as of December 31,...

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