Question

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 earned
- Current ratio
- Quick ratio (also called “acid rest”)
- Write the formula for the P/E ratio and what it measures?
- Should you invest in a company with high P/E or low P/E?

Answer #1

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.

Problem TWO:
Total Asset Turnover (TAT) 3.0xx
Return on Assets (ROA) 9.0000%
Return on Equity (ROE) 12.0000%
Find:
Profit Margin:
Debt Ratio:

what are the formulas
a. Current Ratio
b. Leverage Ratio (financial
leverage)
c. Gross Profit (Gross Margin on the
site)
d. Return on Equity
e. Return on Assets
f. Return on Sales
h. Asset Turnover
I.Inventory Turnover

Explain the kind of information the following financial ratios
provide about a firm. Hand-write all responses. a. Quick ratio - b.
Cash ratio c. Total asset turnover d. Equity multiplier e.
Long-term debt ratio f. Times interest earned g. Profit margin h.
Return on assets i. Return on equity j. Price-earnings

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

Which ratios or numbers is it best to have the lower the
better?
Group of answer choices
debt to asset ratio, average collection period, & days in
inventory
debt to asset ratio, gross profit rate, & days in
inventory
debt to asset ratio, average collection period, & return on
assets
debt to asset ratio, accounts receivable turnover & days in
inventory

I need to calculate the following information for Allscripts
(MDRX) but I do not know how.
1. Liquidity of Short-Term Assets
Current Ratio
Cash Ratio
Quick Ratio
2. Long-Term Debt-paying Ability
Debt Ratio
Debt-equity Ratio
Times Interest Earned
3. Profitability
Net Income / Sales (Profit Margin)
Net Income / Assets (ROA)
Net Income / Shareholder Equity (ROE)
4. Asset Utilization / Management Efficiency
Total Asset Turnover
Inventory Turnover Measures
Accounts Receivable Turnover
5. Market Measures
Price / Earnings Ratio
Earnings...

Current Ratio= 2.33
Operating Profit Margin= 2.3%
Quick Ratio= 0.8488
Total Debt to Equity= 1.21
Inventory Turnover= 4.12
Return on Assets= 1%
Average Collection Period= 37.79 days
Return on Equity= 2.22%
Total Assets Turnover= 2.31
TIE= 1.46
Select two of the ratios you derived in Corrigan Corporation.
Without re-stating the formula itself, explain what the ratio means
in terms of the corporation’s financial health. The industry norms
are provided below to use as comparative information. Points will
be awarded based...

Coca-Cola
Purpose Financial ratio analysis is one of the best techniques
for identifying and evaluating internal strengths and weaknesses.
Potential investors and current shareholders look closely at firms’
financial ratios, making detailed comparisons to industry averages
and to previous periods of time. Financial ratio analyses provide
vital input information for developing an IFE Matrix
Financial Ratios for Coca-Cola (2018)
Liquidity Ratios:
- Current ratio:
- Quick ratio:
Leverage Ratios:
- Debt-to-total-assets ratio:
- Debt-to-equity ratio:
- Long-term debt-to-equity ratio:
-...

Current Ratio = Current Assets / Current Liabilities
=
1,53
Total Debt to Equity = Total Liabilities / Shareholder’s
Equity
=
112.52%
Long Term Debt to Equity = Long Term Liabilities /
Shareholder’s Equity
=
70.25%
Return on Assets = [Net Income + Interest Expense*(1-Tax Rate)]
/ Average Total Assets
=
5.66%
Return on Common Equity = Net Income / Average Shareholder’s
Equity
=
14.57%
Gross Profit Margin = (Sales – Cost of Sales) /...

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