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Q9 to Q12- Write the formula for the following ratios and what each ratio measures: Return...

Q9 to Q12- Write the formula for the following ratios and what each ratio measures:

  1. Return on equity (ROE)
  2. Return on assets (ROA)
  3. Gross profit
  4. Gross margin
  5. Profit margin (also called the “net profit margin”)
  6. Asset turnover
  7. Fixed-Asset Turnover
  8. Inventory Turnover
  9. Inventory Period (also called “days inventory outstanding”)
  10. Collection Period (also called “account receivable period”)
  11. Payables Period (also called “account payable period”)
  12. Operating Cycle
  13. Cash Conversion Cycle
  14. Financial Leverage (also called “equity multiplier” )
  15. Debt-to-assets ratio
  16. Debt-to-equity ratio
  17. Times interest earned
  18. Current ratio
  19. Quick ratio (also called “acid rest”)
  20. Write the formula for the P/E ratio and what it measures?
  21. Should you invest in a company with high P/E or low P/E?

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