What do the Profitability ratios show?

Q: What is the dividend payout ratio and the dividend yield ratio?

A: Dividend payout ratio is the ratio between total dividends and the net income of a company. It helps…

Q: What is the profitability index? When is it used?

A: Capital investment analysis: Capital investment analysis is the process by which management plans,…

Q: What are important profitability ratios?

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

Q: What is the Importance of the Profit Ratio?

A: Profit ratio: Profit ratio is utilized to assess the corporation's capacity to make revenue as…

Q: What are the Profit margins?

A: Answer: Profit margin represents a product, company or sector profitability. It nothing but the…

Q: financial variables that affect the price-earning ratio

A: The price-to-Earning ratio is derived by dividing the Market Price of Share by Earning Per Share.…

Q: What is the difference between the ratios that use the market price and the other ratios? Why might…

A: Ratio analysis mistreatment money statements includes accounting, securities market, and management…

Q: why it is important to use profitability ratios

A: Ratio analysis is an evaluation tool used by the businesses with a view to obtain knowledge about…

Q: What is Profitability?

A: Profits means the excess of revenue earned during a period over the expenditure incurred to generate…

Q: Define the term s price-earnings ratio?

A: Financial Ratios: Financial ratio analysis expresses the relationships between different items…

Q: PROFITABILITY RATIOS

A: Gross profit margin is stable for initial year but tends to reduce in future. Return on sales…

Q: How to calculate profitability analysis?

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: How to calculate the Profitability index?

A: Profitability Index: It is a measure used in capital budgeting of the project's or investment's…

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: What does this say about the company's profitability?

A: We are provided with three profitability ratios here - net profit margin ratio, ROA and ROE - and we…

Q: What does price/earnings ratio tell you?

A: Price-to-Earnings Ratio shows relation between entity’s stock price relative to earnings made on…

Q: What are three ratios that measure profitability?

A: solution concept profitability ratios               Profitability ratios are the ratios that are…

Q: Define the term profit Margin on Sales?

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: What is operating profitability ratio (OP)?

A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…

Q: What is the relationship between profitability and efficiency, liquidity, investment, and efficiency…

A: (1) Financial Ratios will express financial Quantity concerning another financial ratio. (2) These…

Q: what is profitability ratio?

A: Financial ratios provide information related to the company. There are various types of ratios like…

Q: What is the Price Earnings Ratio?

A: The price-earnings ratio is the ratio which helps the investor to determine the market value on the…

Q: What's the difference between the profit margin and gross margin ratio?

A: Ratio is the arithmetic relationship between two figures. Accounting ratios shows the…

Q: What is market value ratios?

A: Introduction: Market value ratios help to assess the economic position of publicly dealt…

Q: Explain profit-and-loss statement?

A: For financial reporting, there are three major financial statements which a business entity is…

Q: How is the profit margin on sales calculated?

A: Profit margin on sale: it's categorized under profitability ratio , generally this ratio is used to…

Q: What would be the sales value or turnover corresponding to the threshold of profitability

A: Sales turnover:  It is the company's total amount of services / products sold over a given period of…

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: Trend analysis of net profit margin and leverage ratios help in identtyi

A: There are various types of risk a businessman needs to evaluate before starting up the business. The…

Q: What is operating profit margin?

A: The operating profit is the profit earned during the year after deducting all the operating expenses…

Q: Give some examples of the market-value ratios?

A: Market value ratios may include various types of ratios which indicate the value of company’s share.…

Q: What is net profit margin?

A: The margin of net profit is equal to the amount of income produced by the net sales or gains. For a…

Q: What is Profitability analysis?

A: Profitability analysis is an important measure for the business to analyze the company's ability in…

Q: What are the different profitability ratios?

A: Profitability ratios are the measure which is used to depict the profitability position of the…

Q: Trend analysis of net profit margin and leverage ratios help in identifying

A: This ratio is used to measure the operational efficiency of the management. It shows whether the…

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

A: Ratio analysis is useful to measure the financial performance of the company and helpful to make…

Q: What is Pro forma (or projected) profit-and-loss statement?

A: Pro Forma financial  Statement (also called as pro forma profit and loss) means that however the…

Q: What is the relationship between NPV and profitability index (PI)?

A: The concept of net present value is used to decide whether to invest in an investment or not. It is…

Q: In what way are profitability and efficiency related? How are profitability and liquidity related

A: The question explains about profitability and efficiency related and profitability and liquidity…

Q: Describe the use of profitability index.

A: Capital investment analysis:   Capital investment analysis is the process by which management…

Q: What does the price-earnings ratio measure?

A: Formula Price earning ratio = Market Price per shareEarnings per share

Q: What is the price/earnings ratio, and how is it calculated?

A: Earnings per share (EPS): It refers to the share of earnings earned by the shareholder on each…

Q: What is the Profitability Index?

A: Capital budgeting is the technique of evaluating a project which requires an initial capital…

Q: How to get or compute the Net sales?

A: Net sales can be calculated by deducting sales returns and sales discounts.