The debt ratio is used primarily as a measure of:     Short-term liquidity.     Profitability.     Creditors' long-term risk.     Return on Investment.

Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…

A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…

Q: Calculate the following ratios: return on equity, return on assets (levered), return on sales…

A: Ratio analysis helps business to know the financial position of it using the interpretation of the…

Q: How is the short term debt repayment capacity of a company is assessed ? Choose the INCORRECT OPTION…

A: Current ratio is the ratio of current assets to the current liabilities.

Q: The ability to meet short-term obligations is termed: A) Profitability B) Solvency C) Efficiency D)…

A: Introduction: Short term period: Short term period means less than one year period.

Q: Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit…

A: Solvency refers to a firm's ability to meet its long term financial obligations or debt.

Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…

A: The Answer is false Refer step2 for explanation

Q: Long-term solvency ratios Total debt ratio Debt-equity ratio Equity multiplier Times interest earned…

A: Long-term solvency ratio:- It is calculated to check the firm's long-term ability to meet its…

Q: Dividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: The cost of capital includes the cost of equity, the cost of long-term debt and the cost of accounts…

A: The capital of a corporation is the amount of money or funds that a corporation uses for operating…

Q: Debt-equity ratio is a sub-part of Select one: a. Liquidity ratio b. Solvency ratio c. Profitability…

A: EXPLNANTION:- The debt-equity ratio is an indicator of the lenders' and stockholders' or owners'…

Q: Which of the following statement is correct? Select one: a. Return on assets is the ratio of net…

A: The ratio is the measure of a relationship between two figures. In accounting, ratio analysis is…

Q: Which of the following ratios is not used to analyzeprofitability?a. Net profit margin ratio.b.…

A: Financial ratio analysis: It can be defined as an analysis tool that is based upon the relative…

Q: ___ indicate the ability of the firm to meet its short-term financial obligations.   a.…

A: Ratio measurement is in terms of Financial world, depicts that a sole accounting data by itself may…

Q: Which of the following risk is affected largely by the debt-to-equity ratio? Liquidity risk…

A: The debt-to-equity (D/E) ratio reflects a firm's revenue obligations to its shareholder equity and…

Q: Which of the following is one measure of liquidity?   a. Quick ratio   b. Profit margin   c.…

A: Introduction: Liquidity: Liquidity means which can be easily converted in to the cash with in short…

Q: Which of the following is true regarding the debt to equity ratio? a. The debt to equity ratio…

A: The debt to equity ratio represents proportion of company's liabilities to the shareholders equity.…

Q: The specific financial aspects to be considered with your analysis are: • Profit Margin • Total…

A: Ratio analysis help to understand the company liquidity, solvency and Profitability capacity.

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: Required: a. Calculate the following ratios: i. Profitability ratios - Retum on Capital Employed,…

A: Ratio analysis is a quantitative method used to know the liquidity, operational efficiency, and…

Q: Computing liquidity, working captial and current ratio. Computing measures of profitability, profit…

A: Liquidity ratios emphasizes on the company’s ability to fulfill the current obligations out of the…

Q: Which of the following is NOT a profitability ratio? Select one: a. Return on Equity b. Net Profit…

A:

Q: Return on equity is: the rate of return that owners earn on their investment O the relationship of…

A: Return on equity can be defined as the earning on the equity as hold by the equity shareholders of…

Q: Ratios that measure liquidity include all of the following except:a. the leverage ratio.b. inventory…

A: Liquidity means short term cash position of the company. To measure liquidity, some ratios are:…

Q: Inflation can have significant effects on income statements and balance sheets, and therefore on the…

A: Inflation : It is the situation in which consumer's demand exceeds supply for goods and services.…

Q: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

Q: Explains the effect of debt on profit margin and return on assets (ROA).

A: Profit margin is net income as a percentage of sales and Return on assets is Net income as a…

Q: Which one of the following is the best indicator of long-term debt paying ability? A)Working…

A: Working capital turnover Working capital turnover is a ratio that measures how efficiently a company…

Q: Asset management ratios Market value ratios Debt management ratios Liquidity ratios

A: Lets understand the basics. Management calculate various ratios to calculate the result of the…

Q: How does the debt-to-equity ratio affect the return on equity?

A: Debt to equity ratio: The debt-equity ratio is also known as an external and internal equity ratio.…

Q: The receivales turnover ratio is used to analyze profitability. liquidity. risk a. b. С. nventors d.…

A: Receivable Turnover Ratio = Net Credit Sales / Average Receivable

Q: a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio…

A: a. When return on total assets is considered, interest expense is added to the net income and…

Q: what are liquidity ratios, leverage ratios, profitability ratios, and market measure rat

A: Ratios are calculated in order to identify the ability of the company from various parameters.

Q: how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to…

A: Financial statements: Financial statements are the summary of transactions presented in the form of…

Q: Present formulas and examples of the following financial ratios (Financial ratios) a. gross margin…

A: Financial ratios are used to measure the  financial performance of a company . Such ratios provide…

Q: If you were interested in determining a company's ability to survive over a long period of time, you…

A: Ratio analysis is a method of computing and analyzing financial ratios to form a judgement regarding…

Q: If you were interested in determining a company's ability to survive over a long period of time, you…

A: If you were interested in determining a company's ability to survive over a long period of time, you…

Q: Which of the following ratios would a lender find most useful in monitoring a porrower's ability to…

A: Analysis of various options: 1) P/E ratio - It is used for measuring the  price of the stock of a…

Q: Which of the following is an advantage of EV/EBITDA ratio compared with P/E ratio? A. EV/EBITDA…

A: Financial ratios are the measures that are used in the financial analysis of a corporation, and are…

Q: d debt percentage

A: The net rate of return is the return on an asset after expenses such as taxes, depreciation, and…

Q: Illustrate how the debt-to-equity ratio impacts the return on equity?

A: A high debt-equity ratio can be acceptable in light of the fact that it shows a firm can without…

Q: a. What is debt management ratio? b. What is profitability ratio?

A: Since, you have asked multiple question, we will solve one question for you. if you want any…

Q: How the debt-to-equity ratio affects the return on equity?

A: The debt-equity ratio is the ratio which demonstrate the proportion of debt capital in comparison to…

Q: Ratios:  Which of the following ratios is not considered to be a test of profitability?   Long-Term…

A: Profitability ratios are a group of financial indicators that are used to evaluate a company's…

Q: Illustrate how the debt-to-equity ratio (total debt over total equity)(distinct from the debt ratio)…

A: The debt-to-equity ratio is one of the important financial indicators of the company. The ratio of…

Q: Ratios that indicate relationships between deposits, borrowed funds and equity in financing loans…

A: Efficiency ratios are those ratios which assess the company's ability to generate revenue using the…

Q: Describe the debt-to-equity ratio and explain how creditors and owners use this ratio to evaluate a…

A: Ratio analysis is a method of analyzing a company's liquidity, profitability, and operational…

Q: Which of the following is the correct explanation for the purpose of financial risk ratios? Select…

A: Liquid assets are those assets which a firm can convert into cash in a very short span of time.…