Discuss some financial variables that affect the price-earnings ratio?

Q: What are important profitability ratios?

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

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: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: Explain an example how to calculate gross profit percentage.

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: financial variables that affect the price-earning ratio

A: The price-to-Earning ratio is derived by dividing the Market Price of Share by Earning Per Share.…

Q: Explain the term Using Ratios to Make Business Decisions?

A: There is lots of information in the financial reports summed up in numbers. We might not have…

Q: why it is important to use profitability ratios

A: Ratio analysis is an evaluation tool used by the businesses with a view to obtain knowledge about…

Q: From the following: What is the industry average price–earnings ratio? What is Ragan’s…

A: The industry average PE ratio can be calculated as follows : P/E ratio = Price earningsPutting…

Q: Define the term s price-earnings ratio?

A: Financial Ratios: Financial ratio analysis expresses the relationships between different items…

Q: Explain price/cash flow ratio

A: Answer: Price to cash flow is determined through the division of price per share by cash flow per…

Q: How to calculate the Profitability index?

A: Profitability Index: It is a measure used in capital budgeting of the project's or investment's…

Q: What is Operating Profit Margin and how is it Calculated? What is a high quality of earnings?

A:

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 does price/earnings ratio tell you?

A: Price-to-Earnings Ratio shows relation between entity’s stock price relative to earnings made on…

Q: Define the term profit Margin on Sales?

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: What is operating profitability ratio (OP)?

A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…

Q: what are contrast economic concepts of income from reported income?

A: As per the income statement, the reported income refers to the income left after subtracting the…

Q: What does the gross profit percentage measure, and how is it calculated?

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: What is the Price Earnings Ratio?

A: The price-earnings ratio is the ratio which helps the investor to determine the market value on the…

Q: What's the difference between the profit margin and gross margin ratio?

A: Ratio is the arithmetic relationship between two figures. Accounting ratios shows the…

Q: What is the standard cost income statement? Give an example?

A: Meaning of Standard cost income statement:A standard cost is the estimated cost of production based…

Q: On what concept is the price-earnings multiple valuation approach based?

A: Price earning ratio is computed by dividing the market price of the share by the earnings per share.

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: Definition of income measurement?

A: The income statement is one of the financial statement of the business.

Q: Price-earnings ratio

A: Price-earning ratio = Price per share/Earnings per share

Q: How do you think financial ratios differ across different industries

A: Financial ratios are a way a whole company can be analysed based on its profitability , liquidity or…

Q: Give some examples of the market-value ratios?

A: Market value ratios may include various types of ratios which indicate the value of company’s share.…

Q: I need exampel on: Price - to -earning ratio Price book ratio Price to cash flow ratio

A: Price Earnings Ratio: It is the connection between an organization's price of stock and the EPS…

Q: The effects of financial choices can be understood by performing which of these? Check two. O Micro…

A: Decision making is the most important function of management. But when it comes to financial…

Q: What is net profit margin?

A: The margin of net profit is equal to the amount of income produced by the net sales or gains. For a…

Q: What are the different profitability ratios?

A: Profitability ratios are the measure which is used to depict the profitability position of the…

Q: Trend analysis of net profit margin and leverage ratios help in identifying

A: This ratio is used to measure the operational efficiency of the management. It shows whether the…

Q: How to calculate net profit margin in pro forma balance sheet

A: Financial statements are referred as the records of the business operations and financial…

Q: What will be Measures of Investment Performance Using Ratios?

A: It is always essential to evaluate the performance of the investments to decide whether the…

Q: Explain what is meant by the term earnings quality.

A: The term earnings refer to the amount of money the company had earned during a particular period of…

Q: What is gross profit margin?

A: The method to analyze the performance of a company through its profitability is term as the…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share

Q: How do I calculate Net Income & Net Profit Margin

A: Net income: The bottom line of income statement which is the result of excess of earnings from…

Q: Do you use an income-statement strategy?

A: The income statement is one of three financial statements of an entity.(The others are the balance…

Q: What does the price-earnings ratio measure?

A: Formula Price earning ratio = Market Price per shareEarnings per share

Q: What is meant by the terms margin and turnover in ROI calculations?

A: ROI( Return on investment) is a performance measure used to measure the efficiency of an…

Q: what is Income Projections

A: An income projection statement is a formal document prepared by finance or accounting officers…

Q: What is the price/earnings ratio, and how is it calculated?

A: Earnings per share (EPS): It refers to the share of earnings earned by the shareholder on each…

Q: What does the price-to-earnings ratio (P/E) tell you?

A: Ratio analysis is a process under which we evaluate the performances of company and its competitor…

Q: What is the Profitability Index?

A: Capital budgeting is the technique of evaluating a project which requires an initial capital…