Explain the importance of financial 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: how do I calculate the quick ratio in a balance sheet?

A: Quick ratio is a liquidity ratio which is used to analyse the ability of a company to pay their…

Q: How is the the financial ratio analyses very useful?

A: Ratio analysis is a method of relative measure between two numericals for gaining knowledge about a…

Q: Give an example of a debt ratio?

A: Companies’ capital structure may contain debt and equity. It is not necessary for any company to…

Q: What are the different ways to calculate the Financial ratios?

A: Financial ratios:   Financial ratios are the metrics used to evaluate the capabilities,…

Q: How do you make a horizontal analysis on an income statement and balance sheet?

A: Horizontal analysis of financial statements: In horizontal analysis of financial statement, the…

Q: How to prepare report on financial ratios

A: The ledger accounts will be prepared taking the journal as the source document. The ledger accounts…

Q: Define Balance sheet ratios

A:

Q: Which balance sheet might be most useful to an investor? a. U.S. GAAP balance sheet b. IFRS GAAP…

A: IFRS is principal based.

Q: Cite all the ratios used in Financial Ratio Analysis and briefly describe the use of each ratio.

A: Financial Ratios:   Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Define capital requirement ratio (CR)

A: Answer: Capital requirements are nothing but regulatory guidelines for banks that specify the amount…

Q: w is the use of financial statement ratio

A: Financial ratios are computed by averaging numerical values from financial statements to obtain…

Q: Summarize some of the Key Financial Ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: Calculate and analyze the financial ratio from Liquidity, Profitability, Activity, Solvency and…

A: Financial ratio is an arithmetic expression used to describe the significant relationship between…

Q: Describe ratios that are used in profitability analysis.

A: Profitability ratios are a class of financial metrics that are used to assess a business's ability…

Q: explain financial ratios and financial cycle

A: Financial ratios are designed using the numerical values taken from financial statements to obtain…

Q: describe how ratio analysis and other techniques can be used to model and forecast earnings.

A: Ratio analysis is a quantitative method to evaluate the company’s financial strength by the…

Q: What are the importance of accounting ratios

A: Importance of accounting ratios: Debt/Equity ratio Working Capital ratio Inventory Turnover ratio…

Q: Identify the major types of financial ratios and what they measure.

A: Accounting ratios are calculated to measure the liquidity, solvency, and profitability of the…

Q: Match the ratio to the building block of financial statement analysis to which it best relates.A.…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts receivable.

Q: Explain income statement?

A: Financial accounting means summarizing, analyzing, reporting of financial transactions of a…

Q: (a) Determine the cost of equity

A: Cost of equity in the given problem can be computed using capital asset pricing model.

Q: What are the different sources of financial ratio information?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: What do the Liquidity ratios show?

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

Q: Define cost of equity

A: Every company has two major types of financing one is through raising equity shares and the other is…

Q: What do you understand the vertical and horizontal income statement account and balance sheet…

A: The financial statement contains both income statement and balance that are very useful for users'…

Q: Define the term financial ratio.

A: Financial ratio: The financial ratio is used to determine the performance of the business by…

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

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: Explain the importance of financial ratio analysis, including the importance or relevance of…

A: Its a way to conduct a company's financial health check.  Suppose you are the investor and you are…

Q: Of the three financial ratios, which do you think is the most important financial ratio? Why?

A: A financial ratio is used to calculate the financial position as compared to the other firms in the…

Q: Explain an example how to calculate accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: Describe the rules of accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: Calculate the liquidity ratios and current ratios?

A: Liquidity ratios include quick ratio, current ratio, and cash ratio. The Quick ratio is the…

Q: financial ratios?

A: Ratio is tools to analyse the financial data of an organisation. Some Financial ratio are as  Gross…

Q: Why is the income statement called a dynamic financial statement?

A: Income statement is that financial statement that shows the different income as well as expenditures…

Q: facilitates the comparison of financial noriod t moth

A: Option a is wrong because historical cost concept suggests to record of assets and liabilities at…

Q: Define liquidity ratios.

A: Liquidity Ratios: The term Liquidity refers to the ability of the company to meet its current…

Q: Who are the basic users of financial statements, and what are the financial ratios that are useful…

A: Financial statements include balance sheet, income statement, statement of changes in owner's…

Q: Use the attached information to complete the ratio analysis.  The Ratio Analysis is for Liquidity,…

A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…

Q: What is the meaning of each financial ratio?

A: Introduction: A financial ratio is a statistic that is frequently provided by two numbers acquired…

Q: Define debt ratio

A: Ratio refers to the relationship between the two quantities which shows the quotient of one divided…

Q: Overall Comparative Financial Analysis is included:

A: Comparative financial analysis uses financial information of different time periods to evaluate the…

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 is the Financial Statement Analysis?

A: solution concept The given are the indicators of the liquidity ratio These ratio explains how liquid…

Q: Could you please discuss the limitations of financial ratio analysis

A: Introduction Ratio analysis may be defined as that type of analysis tools which is used to ascertain…

Q: Identify and calculate the common ratios used to assess profitability.

A: Profitability ratios:   Profitability ratios are those ratios that helps a company to access the…