Amount of profit per peso of sales Profit per peso of current assets every time 3. b. current assets are used Rate at which earnings per share are C. capitalized
Amount of profit per peso of sales Profit per peso of current assets every time 3. b. current assets are used Rate at which earnings per share are C. capitalized
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.2KTQ: Quiz 2: Solvency Debt-to-equity ratio Times interest earned ratio Debt service coverage ratio Cash...
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Question
![ermine to which formula does each of the following refers:
, Significance of Financial Ratios Used to Measure Profitability
h. Profitability in the use of working capital
Amount of profit per peso of sales
Profit per peso of current assets every time
3.
i.
Overvaluation or undervaluation of stock
b.
j.
Rate at which owner's equity is being used
current assets are used
k. Amount of actual returns per share of
Rate at which earnings per share are
capitalized
d. Earnings of the corporation on a per share
of capital stock basis
Number of times average current assets are
C.
common stock
Efficiency in the use of total resources
m. Numbers of times working capital is used
Portion of sales absorbed by operating costs
Profitability in the use of invested capital
Profit earned every time working capital is
1.
n.
e.
0.
used
p.
f.
Ratio of distributed earnings to earnings per
used
share
q. Profitability in the use of current assets
Insufficiency of current assets
g. Adequacy of markup on sales
r.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F872e3a65-583b-4c59-a996-8ee58f9abca8%2F689cba96-c93c-40ca-ba5c-9da790adf09c%2Fr6nmphb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ermine to which formula does each of the following refers:
, Significance of Financial Ratios Used to Measure Profitability
h. Profitability in the use of working capital
Amount of profit per peso of sales
Profit per peso of current assets every time
3.
i.
Overvaluation or undervaluation of stock
b.
j.
Rate at which owner's equity is being used
current assets are used
k. Amount of actual returns per share of
Rate at which earnings per share are
capitalized
d. Earnings of the corporation on a per share
of capital stock basis
Number of times average current assets are
C.
common stock
Efficiency in the use of total resources
m. Numbers of times working capital is used
Portion of sales absorbed by operating costs
Profitability in the use of invested capital
Profit earned every time working capital is
1.
n.
e.
0.
used
p.
f.
Ratio of distributed earnings to earnings per
used
share
q. Profitability in the use of current assets
Insufficiency of current assets
g. Adequacy of markup on sales
r.
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