This ratio is used to reflect t profit earning performance firm's assets return on assets net profit margin

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter4: Profitability Analysis
Section: Chapter Questions
Problem 1QE: Common-Size Analysis. Common-size analysis is a simple way to make financial statements of different...
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This ratio is used to reflect the
profit earning performance of the
firm's assets *
return on assets
net profit margin
returns on owner's equity
current ratio
Transcribed Image Text:This ratio is used to reflect the profit earning performance of the firm's assets * return on assets net profit margin returns on owner's equity current ratio
There are three kinds of
comparative analysis, except:
government policy
past or future ratios
financial ratios of other firms or
industry average
rule-of-thumb standards
Transcribed Image Text:There are three kinds of comparative analysis, except: government policy past or future ratios financial ratios of other firms or industry average rule-of-thumb standards
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