How are the ratios useful?

Q: What limitations do ratio analysis have?

A: Ratio Analysis: It is a technique used in the financial analysis field. Ratio analysis helps to use…

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: How the other ratios affects the ROE?

A: Return on equity is used to measure the company’s ability to utilize their assets to generate…

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: What is the difference between vertical analysis and horizontal analysis?

A: Explain the difference between the horizontal and vertical analysis. Horizontal Analysis: it…

Q: What is factoring?

A: It is a money related service in which the business entity sells its bill receivables to an outsider…

Q: Which of the following is true about rates?

A: Total Rate of Return: The total rate is the real rate of return made on an investment over a period…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

Q: How do we calculate the current ratio?

A: Current ratio: Current ratio categorized under liquidity ratio which is helps to know the liquidity…

Q: How do we calculate the quick ratio?

A: Quick ratio: Categorized under liquidity ratio  Quick ratio which helps company to know the it's…

Q: What is margin call?

A: The margin is defined as the money required from the traders for futures exchanges.  It is to…

Q: What is LIBOR?

A: London Interbank bank offering rate (LIBOR): it's a financial interest rate between two bank or…

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: Under what conditions will the weighted average and FIFO methods give essentially the same results?

A: Under the FIFO (First in first out) method of inventory valuation, goods which are purchased first…

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: Why is Quick Ratio deemed a better measure than the two other measures? Explain:

A: Quick ratio is used for measuring the short term liquidity position of the company and forms a part…

Q: What is current ratio and how is it calculated?

A: Liquidity ratio:Liquidity or solvency ratio helps to measure the ability of the concern to meet its…

Q: What does a high current ratio indicate?

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

Q: Explain gaining ratio

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

Q: How is RI calculated?

A:

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: What is current ratio

A:

Q: What is the P/D ratio? How can it be improved?

A: P/D ratio is more accurate way for anticipating what is really required. P/D ratio compares the…

Q: solvency ratio

A: The solvency ratio is the ratio that tells about the company's ability to pay its liabilities or…

Q: When is the Ratio method applicable? How about the Apportion method? Give situational example.

A: The Ratio method is applicable in order to the identification of the cost and time of the specific…

Q: what is quick ratio?

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

Q: Why is ratio analysis so significant?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: What is a cross rate?

A: Cross rate is an exchange rate of currency between two countries, but both countries are not using…

Q: Why are comparative ratio analyses useful?

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

Q: What is the geometric-gradient-series present-worth factor?

A: Present worth: It is the present value of future cash flows. The gradient is a change occurring in…

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: What is hurdle rate?

A: Hurdle rate a rate usually used in capital budgeting decisions to calculate the acceptability of a…

Q: Define solvency ratios.

A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…

Q: What do you understand by current ratio? What are it uses? What are its limitations?

A: As per Bartleby policy, only one question will be answered. A ratio is simply a mathematical…

Q: Explain the limitations of ratio analysis

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

Q: The FIFO method provides a major advantage over the weighted-average method in that______?

A: The FIFO method provides measurements of work done during the current period .

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: Why is current ratio used?

A: Current ratio is the measure of liquidity position of the company. It shows the ability of the…

Q: Define Profi tability ratios

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

Q: solvency ratios

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