How can we use ratios to make Business Decisions?

Q: Explain the Limitations of Financial Ratios in Business Decisions?

A: Financial ratios are very useful in showing the relationship between the items within the financial…

Q: If you were a user of financial statements, what type of ratio/analysis do you think would be most…

A: Financial ratios are relationships derived from a company's financial records that are used for…

Q: List the relevant market value ratios of  companies.

A: Introduction:- Market value ratios is used evaluate the current share price of publicly traded…

Q: Briefly describe the ratios that can be used to evaluate a company’s profitability.

A:

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: What is the basic purpose for examining trends in a company’s financial ratios and other data?

A: Ratio analysis, horizontal analysis and vertical analysis are the analytical tools used by the…

Q: There are three broad categories of financial ratios: liquidity, solvency, and profitability.…

A: Financial ratio is the financial analysis tool which helps to evaluate the financial position and…

Q: Describe the procedure of using Ratios to make Business Decisions?

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

Q: Accounting ratios are only as good as the data on which they are based.’ Discuss. What does ‘ROCE’,…

A: Hello, I am only answering first question as per the policy and if you want others to be answered…

Q: Who uses financial ratios and how the ratios are used?

A: Financial ratios are the important tool for measuring company’s performance in terms of their profit…

Q: How do we use Ratios to Make Business Decisions?

A: Ratios are helpful to evaluate the company's financial performances and financial position of the…

Q: Of the following departments, which are responsible for the following ratios? Finance, Sales, HR,…

A: Ratios are key indicators of the company's performance. It is minutely monitored by insiders as well…

Q: What are the Limitations of Financial Ratios in Business Decisions?

A: Limitations of Financial Ratios in Business Decisions are as follows: Firms operating in various…

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: How can Turnover Ratios be used to judge a company's performance?

A: Ratio is a financial measure which is used to measure the company’s growth and performance by…

Q: What are the two ways companies can present comprehensive income?

A: Comprehensive income:   Comprehensive income represents the amount of net income plus other…

Q: What are the importance of accounting ratios

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

Q: Explain the importance of financial ratio.

A: Financial ratio is referred to as the relative magnitude of the 2 chosen numerical values, which…

Q: What are some important ratios to analyze in financial statements? Which measures are important and…

A: Some of the important ratios to analyze financial statements are as shown below:   - Current ratio -…

Q: How would the current and quick ratios of a service business compare?

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

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: What is the usefulness of using Ratio analysis in financial reporting? What is industry average? How…

A: Ratio Analysis: Ratio analysis is a quantitative means of obtaining insight into a business's…

Q: How can factoring help a company manage itscash flow?

A: Sales means delivery of goods and services by the seller. It can be for cash sales or sales made on…

Q: What does ‘ROCE’, EPS and P/E ratios and why are they important to a business entity?

A: ROCE means Return on Capital Employed. EPS means Earnings Per Share. P/E ratio means Price Earnings…

Q: Why is it important to use ratios to analyze financial statements?

A: Financial statements are those records which are prepared by businesses to convey activities related…

Q: ratio

A: Ratio analysis is a technique of financial statements analysis. It is the most widely used tool to…

Q: Describe the process of using Ratios to make Business Decisions?

A: Answer: Ratio analysis is nothing but a study of a business using the financial factors and…

Q: Explain how ratio analysis can be used to evaluate the business ability to pay its debt Which…

A: Ratio Analysis:   It is a technique by which the financial position of a company is analyzed. This…

Q: Describe and justify why you would use the following ratios as an analyst to evaluate the…

A: The ratio of various profits (such as gross profit, net profit, operating profit) to Net sales are…

Q: Can ratio analysis describe a business properly?

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

Q: Discuss how a financial manager can use ‘current ratio’ and ‘debt ratio’ in ratio analysis to better…

A: Ratio analysis is a technique of analyzing and interpreting financial statements by establishing and…

Q: Should we use common size financial statements to compare corporate performance with other…

A: A common size financial statement refers to that financial statement in which a line item is…

Q: Compare and contrast horizontal and vertical analysis?

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

Q: Base on this financial ratios, what are your conclusions and recommendations for the company

A: The ratio is a measure of the financial performance of the company that shows the relation between…

Q: Explain how a financial manager may use financial ratios to analyse the financial performance of a…

A: Ratios are instruments that compare two quantitative figures and provide the necessary information…

Q: In conducting a B/C analysis, (a) why is it usually necessary to take a specific viewpoint in…

A: View point differs from person to person depending upon their costs and benefits from a project. It…

Q: How do we use debt to equity ratio to evaluate business performance?

A: debt to equity ratio is a ratio used to measure the solvency of a business . Debt to equity ratio is…

Q: What are the similarities between the income, market, and asset approaches to business valuation?

A: Business valuation is the measure of the economic value of a company for the benefit of the owners.…

Q: Which of the following are not part of the components ofthe DuPont system for measuring and…

A: DuPont system is used to measure the return on the equity.

Q: How do you find total sales in financial accounting?

A: Total sales in accounting: It refers to the net revenue of the organization that is reported in the…