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What would assist in assessing the profitablity of a compnay?Question Answer : a Earning per share would assist in assessing the profitablity of a compnay Explanation : Profitablity is the profit earned by the compnay after com … View the full answer
What is a profitability ratio?Profitability ratios are financial metrics used by analysts and investors to measure and evaluate the ability of a company to generate income (profit) relative to revenue, balance sheet assets, operating costs, and shareholders’ equity during a specific period of time.
When a company’s days to sell ratio is likely to fall?If a company builds up inventories, its days to sell ratio is likely to fall. A. If a company is expanding its facilities, its fixed asset turnover ratio is likely to fall temporarily Nice work! You just studied 61 terms! Now up your study game with Learn mode. Which of the following statements regarding trend analysis is true?
Which of the following is a measure of profitability?Gross profit margin is one of the most widely used profitability or margin ratios. Gross profit is the difference between revenue and the costs of production—called cost of goods sold (COGS).
Which of the following ratios would be considered useful in assessing operating profitability?Some types of profitability ratios are: Profit margin, return on assets, Return on equity etc. Hence, return on equity is the most useful ratio amongst the given ratios to evaluate the profitability of the company.
Which of the following measures provides an indication of how efficient a company is in employing its assets?The asset turnover ratio measures the efficiency with which a company utilizes its assets to generate sales. The ratio calculates net sales as a percentage of assets. This ratio is calculated at the end of a financial year and can vary widely from one industry to another.
Which of the following is a solvency ratio?The main solvency ratios are the debt-to-assets ratio, the interest coverage ratio, the equity ratio, and the debt-to-equity (D/E) ratio.
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Which of the following measures would assist in assessing the profitability of a company?
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