Define comparative ratio analysis

Q: What Is Quantity Discount Analysis Illustrated?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Define price earnings ratio.

A: P/E Ratio: Price Earnings ratio is the ratio of company’s current share price to the company’s…

Q: Discuss any two limitations of  Ratio analysis.

A: Limitations of ratio analysis:Ratios are mostly computed based on historical costs as a result;…

Q: advantages and disadvantages of using ratios

A: Accounting ratios are important metrics used to evaluate the financial position of a business…

Q: What is the difference between margin and markup?

A: Margin and Markup are two terms used for calculation of selling price of the product. Margin is also…

Q: What are some steps that must be taken when using ratio analysis? What is the most important aspect…

A: To analyze the financial statements, ratio analysis is an important tool. Ratio analysis helps to…

Q: Sales data would be considered to be examples of __________ data. Multiple Choice ordinal interval…

A: Ratio data mean that quantitative data which can be written as percentage or ratio and can be better…

Q: List and briefly explain the  quantitative and qualitative  factors consider for ratio  analysis

A: Ratio analysis is a quantitative method of observing a company's liquidity, operational efficiency,…

Q: PROFITABILITY RATIOS

A: Gross profit margin is stable for initial year but tends to reduce in future. Return on sales…

Q: Describe any five types of ratio analysis?

A: Ratio:   A ratio is a number expressed in terms of another to establish relationship among them.

Q: List the most important assumptions of cost-volume-profit analysis.

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining that how any…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: What are solvency ratios and what do they measure?

A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…

Q: What ratio, profit, target, or margin is the most important?

A: Accounting Accounting refers to the keeping of a systematic record of business transactions…

Q: "Ratio analysis reveals hidden facts" - Comment on this statement highlighting the merits and…

A: SOLUTION RATIO ANALYSIS IS THE QUANTITATIVE ANALYSIS OF DATA ENCLOSED IN AN ENTERPRISE'S FINANCIAL…

Q: Define crossover rate

A: Crossover over rate helps the company to determine which investment proposal will be beneficial in…

Q: Identify major analytic ratios and describe their calculation

A: Accounting ratios are used by the company in checking the profitability, solvency, credit worthiness…

Q: Discuss the advantages and limitations of Ratio Analysis.

A: Ratio analysis is the process of determining and interpreting numerical relationships based on…

Q: Giving two circumstances in which Gaining ratio may be applied.

A:

Q: Describe the measure based on an index, known as the benefit-cost ratio?

A: A benefit-cost ratio (BCR) is a proportion used to summarize the general connection between the…

Q: Explain gaining ratio

A: Introduction:- Gaining ratio may be defined as Gaining ratio is a type of financial tool, which…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: Define basic earning power (BEP) ratio

A: The formula to compute basis earning power ratio as follows:

Q: differentiate and give illustrations of the difference between FIFO and Weighted Average.

A: Inventory Valuation - There are three method using which company can value their inventory a. FIFO…

Q: Typically, Which Is More Comprehensive, the P/E Ratio, PEG Ratio, EV To Sales Ratio or the EV To EBİ…

A: Introduction : . The price to earnings ratio is a multiplier that is used to value the relative…

Q: What is percentage flotation cost, F ?

A: The flotation cost percentage is often measured as the company’s flotation costs calculated as a…

Q: List three types of users of ratio analysis. Would the different users emphasize thesame or…

A: Introduction: A ratio is a simple arithmetical expression of the relationship of one number to…

Q: Quantitative M

A: Simple interest is a quick and easy way to calculate the interest rate on a loan which is determined…

Q: Define the term Income Smoothing.

A: Income Smoothing: It is an accounting technique which is used to move revenues and expenses of one…

Q: Define “Market Value Added (MVA)” and “Economic Value Added(EVA).”

A: Introduction: Economic value added (EVA) and Market value added (MVA) are computations utilized to…

Q: ratios

A: Definition: Accounting Ratio: It means comparison between two or more financial elements used in…

Q: Why are comparative ratio analyses useful?

A: Financial analysis can be defined as the evaluation of the profitability, durability and feasibility…

Q: main limitations of ratio analysis

A: Ratio analysis is the way to assess the financial status of an entity based on certain accounting…

Q: Define gaining ratio and why is it calculated.

A: Gaining ratio: The gaining ratio is a ratio used to ascertain the amount of gain in profit…

Q: Explain price/EBITDA ratio

A: The EV/EBITDA ratio compares a company's enterprise value to its earnings before interest, taxes,…

Q: 1. Describe the difference benchmarks that can be used for ratio analysis.

A: Ratio analysis: It is the method of evaluation of the current financial condition of the company…

Q: benefits of the DuPont system of ratio analysis

A: DuPont system of ratio analysis is the analysis based on the accounting ratio regarding the way to…

Q: Define selling group

A: A selling group consists of all financial institutions which are directly or indirectly involved in…

Q: Describe the Define the term Benefit-Cost Ratio?

A: Cost benefit analysis is a quantitative approach used by top level management to evaluate the…