What does the price-earnings ratio measure?

Q: What does inventories /sales ratio mean?

A: An accounting metric used to measure liquidity, solvency, efficiency etc. of a business entity is…

Q: What is Day's-sales-outstanding ratio?

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

Q: What do the Retained earnings represent?

A: Financial Statement:   They are annual reports of an organization summarizing the financial…

Q: Define price earnings ratio.

A: P/E Ratio: Price Earnings ratio is the ratio of company’s current share price to the company’s…

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 earnings management?

A: Earnings refer to the amount earned by the business during the financial year. It may vary from year…

Q: From the following: What is the industry average price–earnings ratio? What is Ragan’s…

A: The industry average PE ratio can be calculated as follows : P/E ratio = Price earningsPutting…

Q: Define the term s price-earnings ratio?

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

Q: What is Re-order quantity? What is Re-order level? What is Maximum stocklevel? With respect to…

A: Inventory management consist of various levels namely re-order level, re-order quantity, maximum and…

Q: What is the Cost of goods sold equation?

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: What is Operating Profit Margin and how is it Calculated? What is a high quality of earnings?

A:

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: 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: The difference between gini coefficient of market income and gini coefficient of disposable income…

A: The difference between gini coefficient of market income and gini coefficient of disposable income…

Q: P/V Ratio is an indicator of [A] the rate at which goods are sold [B] the volume of sales [C] the…

A: P/V ratio also known as profit volume ratio is a ratio that determines the amount of profit attained…

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: Why must a cost be assigned to retained earnings?

A: Likewise, debt and equity financing, retained earnings has also some cost. The predictor care about…

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: Define how costs of goods and other costs such as taxes contribute to the performance besides sales?

A: Performance of the business is usually measured by the ability of the company to generate the net…

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 the standard cost income statement? Give an example?

A: Meaning of Standard cost income statement:A standard cost is the estimated cost of production based…

Q: On what concept is the price-earnings multiple valuation approach based?

A: Price earning ratio is computed by dividing the market price of the share by the earnings per share.

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 is the Fixed Charge Coverage Ratio? • What is the Earnings Yield Ratio?

A:

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: Explain the trend analysis of Basic Earning Power.

A: Basic Earning Power (BEP) is a financial metric that creates a relationship between the total…

Q: Price-earnings ratio

A: Price-earning ratio = Price per share/Earnings per 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 the gross profit and how do i calculate it

A: Manufacturing department profit is also known as gross profit. This profit includes only costs…

Q: What are the different profitability ratios?

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

Q: What are trade margins? How do they relate to thepricing for a produce, of goods?

A: A product is manufactured so that it can be sold to the consumer for the consumption purpose.…

Q: How is Profit Margin calculated and what does It measure?

A: Note: Since you have asked multiple questions, we will solve the first question. To get the…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share

Q: What is the gross profit margin? Higher ratio or lower ratio

A: Ratio analysis can be defined as the comparative analytical tool. It helps to determine the…

Q: How does a contribution margin income statement differ from a traditional income statement?

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Explain price/earnings (P/E) ratio

A: There are various types of ratios. some ratios are to know the hearing capacity or market price of…

Q: Explain the types Earnings?

A: Earning is the amount of income that an individual or organization receives during a year.

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: for Market Price per S

A: Step 1 The market price or market capitalization of a company is calculated using the market price…

Q: How can earnings management affect the quality of ­earnings?

A: The concept of quality earning shows the amount of earning which is not earned by any default or…

Q: What does the price-to-earnings ratio (P/E) tell you?

A: Ratio analysis is a process under which we evaluate the performances of company and its competitor…

Q: How to get or compute the Net sales?

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