What financial ratio is predominantly used to determine profitability?

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: How is the the financial ratio analyses very useful?

A: Ratio analysis is a method of relative measure between two numericals for gaining knowledge about a…

Q: In generating a pro forma balance sheet, on what is the percentage of salesmethod based?

A: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the…

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 does the income statement measures?

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

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: What are the three main profitability ratios, and howis each calculated?

A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt…

A: Financial ratio can be defined as the accounting ratio which helps the business in evaluating the…

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: The elements that are directly related to the measurement of profit are assets, liabilities, and…

A: The profit is recognized by an entity at the instance where the assets are increasing, or the…

Q: What are three ratios that measure profitability?

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

Q: What is the basic equation underlying the income statement?

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

Q: what is profitability ratio?

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

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: Explain income statement?

A: Financial accounting means summarizing, analyzing, reporting of financial transactions of a…

Q: Explain why the income statement can also be called a “profit-and-loss statement.”

A: Income statement or profit and loss statement  Income statement or profit and loss statement is a…

Q: What are the different sources of financial ratio information?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: What do you understand the vertical and horizontal income statement account and balance sheet…

A: The financial statement contains both income statement and balance that are very useful for users'…

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: Explain profitability index

A: Profitability index is a financial tool which tells us whether an investment should be accepted or…

Q: alculate the gross profit ratio and net profit ratio?

A: The gross profit ratio is a financial ratio that evaluates the performance and efficiency of a…

Q: Explain profitability ratios

A: SOLUTION:- A profitability ratio is a measure of profitability, which is a way to measure a…

Q: What are the advantages and disadvantages of thesingle-step income statement?

A: Income Statement: Income Statement is the part of the financial statement which is prepared to…

Q: how is profit or loss calculated on an income statement?

A: Profit and loss is calculated as below-

Q: Define the term Profit margins?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Find the coverage ratio and profitability ratio

A: Ratio analysis is used for measuring the financial efficiency, profitability and revenue of an…

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: 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 meaning of each financial ratio?

A: Introduction: A financial ratio is a statistic that is frequently provided by two numbers acquired…

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: How is gross profit calculated, and what does it represent?

A: Gross profit is the difference of amount obtained by subtracting Cost of goods sold from Net…

Q: What do the Profitability ratios show?

A: Profitability Ratio Profitability Ratio is basically a tool to assess a company's ability to…

Q: Explain the difference between NOPAT and net income. Which is a better measure of the performance of…

A: The net operating profits after taxes (NOPAT) is the operating profits after taxes. It includes all…

Q: Identify and calculate the common ratios used to assess profitability.

A: Profitability ratios:   Profitability ratios are those ratios that helps a company to access the…

Q: Where is net profit shown in balance sheet?

A: The profit of a corporation is referred to as net profits.

Q: Describe the common profitability measures.

A: Common profitability measures include profitability ratios such as ROE, ROA, profit margin etc They…

Q: What is the Profitability Index?

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

Q: What are the characteristics of a strong income statement?

A: