Define solvency ratios.

Q: How are the ratios useful?

A: Answer: Ratio analysis is allowing a comparison two firm’s annual financial statement using certain…

Q: Define the term cutoff values?

A: Cut-off values for diagnosis or screening examinations that have constant outcomes (estimated on a…

Q: Define actuarial rate of return

A: Definition: Actuarial rate of return is the expected value of losses of an insurance company that…

Q: Vertical Analysis

A: Trend analysis is an analysis done by the companies to understand their current performance with…

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: What is Ratio Analysis? Briefly explain

A: Ratio Analysis: It is the procedure of analyzing and looking at money related data by determining…

Q: Define degree of operating leverage.

A: The degree of operating leverage (DOL) is a financial ratio that measures the sensitivity of a…

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: Set out and explain the function of the p/e ratio

A: P/E ratio is a vital valuation ratio used in relative valuation methods. The function of pe ratio…

Q: Define Vertical analysis.

A: Financial statement analysis   Financial statement analysis are analyzed to understand the…

Q: Define the term leverage. And method of computing degree of leverage.

A: Financial Accounting:- The term financial accounting includes recording, summarizing and reporting…

Q: Understand how toconstruct and use a balancedscorecard

A: Balance Score Card: Balance Score Card is used for assessing the efficiency of the business…

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: find The internal rate of return (IRR) for this case in exceland equation.

A: Internal rate of return(IRR) is the rate at which the the initial cost of project is equal to…

Q: Calculate Vertical and Horizontal Ratio Analysis?

A: Ratios refer to the measurement of the relation between two sums. In accounting, ratio analysis is…

Q: ompare and contrast Liquidity ratio and solvency rati

A: Analysis of the company's financial statements, such as the balance sheet and income statement, can…

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: One of several ratios that reflects solvency includes the:

A: Solvency ratio of the business means how well a company's cash flows can cover or pay long term…

Q: Discuss the advantages and limitations of Ratio Analysis.

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

Q: Explain gaining ratio

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

Q: Calculate the Gaining Ratio.

A: Since you have asked multiple questions, we will solve the first question for you. If youwant any…

Q: How can the quick ratio be determined with the given information?

A: Quick Ratio: Quick ratio is a liquidity ratio calculated for the purpose of evaluating the liquidity…

Q: Explain quick ratio

A: The formula to compute quick ratio as follows:

Q: Explain four aspects of rate-of-return analysis?

A: The return of return is the return on investment made when the time value cashflows turns to net…

Q: what is quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: ratios

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

Q: What should be done to apply rate-of-return analysis correctly?

A: Rate of return: It can be defined as the rate of interest that has been earned by the company on the…

Q: What is ratio analysis?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: How is the Quick Ratio calculated?

A: Definition:   Quick ratio: The financial ratio which evaluates the ability of a company to pay off…

Q: What does the quick ratio measure?

A: Ratio Analysis is a financial tool used to derive conclusions about the company’s health and overall…

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: Formula for quick ratio?

A: Quick ratio is an important financial ratio used to evaluate the liquidity of the company

Q: what is the quick ratio,

A: The quick ratio( also know as acid test ratio) is an state that a company’s short-term liquidity…

Q: Define Profi tability ratios

A: A ratio is a tool used by management to analyze the effectiveness of various financial statements.…

Q: Find the internal rate of return

A: Internal Rate of Return is the rate at which Present value of cash inflow is equal to present value…

Q: Compare and contrast trend analysis and comparative ratioanalysis

A: The key distinction between analysis and comparative analysis is that analysis may be a procedure in…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: solvency ratios

A: Solvency ratio indicates the company's ability to pay off its debt obligation.