What is Day's-sales-outstanding ratio?

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: 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: net sales is

A: Net Sales is the Revenue that is reported in the profit and loss account of the entity  The formula…

Q: Determine the gross profit from sales for the period.

A: Revenue:   It refers to the earnings of an organization form business operations for a particular…

Q: Define the term s price-earnings ratio?

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

Q: What financial ratio is predominantly used to determine profitability?

A: Return on Investment: Return on Investment (ROI) is a performance measuring ratio utilized to assess…

Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…

A: SOLUTION A- Relation between profitability and efficiency ratios   Profitability ratio depicts how…

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 is the difference between Cost-Volume Profit graph and Profit-Volume graph?

A: Introduction:- Cost-Volume Profit graph displays the relationship between the cost of units…

Q: what is profitability ratio?

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

Q: Explain percent of sales method.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

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 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: which of the following ratios would a supplier most likely monitor to assess the ability of a…

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

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: Relative to the above data, how much is the Cost of sales and Net income for the period

A: The cost of goods sold is the cost of purchases and manufacturing of the products which the company…

Q: What is meant by the term sales mix?

A: Sales Mix: Sales mix is the relative proportion or ratio of a business's products that are sold.…

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: Sales return is a?

A: Suppose a manufacturing entity sales 10,000 units($50,000) of erasers to wholesalers, then the buyer…

Q: What are the different profitability ratios?

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

Q: Why does the sales value at splitoff method use the sales value of the total production in the…

A: Split-off Point: Split-off point is the point in production process where joint products are capable…

Q: What is gross profit margin?

A: The method to analyze the performance of a company through its profitability is term as the…

Q: Which product line has the highest gross profit %? Which product line has the highest net income %?

A:

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: It is the net after tax ratio with sales revenues?

A: Sales revenue is the revenue which has been earned by the company for the selling of the products or…

Q: What are the three approaches to calculating the sales required to achieve the target profit? Give…

A: Target profit is referred to as the amount profit that the supervisors of a business hope to…

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: What do the Profitability ratios show?

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

Q: What is the value of Sales?

A: Sales: Sales represent the amount of goods sold during the year.  Sales comprise of all the costs…

Q: Compute the gross margin ratio and explain its use to assess profitability.

A: Gross margin ratio is the measure of profitability of the business and it depicts a ratio between…

Q: What does the price-earnings ratio measure?

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

Q: Define Return on sales

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

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 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.