Which one of the following formulas is correct?O i) Profit margin = EBIT / Salesii) ROA = ROE / Equity multiplier%3DO ii) Capital intensity ratio = 1 / Return on assetsO iv) Quick ratio = Cash / Current liabilities

ROA = ROE / Equity Multiplier ROA = Net Income / Total Assets ROE = Net Income / Shareholders'…

Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales O ii) ROA = ROE / Equity multiplier O iii) Capital intensity ratio = 1 / Return on assets iv) Quick ratio = Cash / Current liabilities

Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales O ii) ROA = ROE / Equity multiplier O iii) Capital intensity ratio = 1 / Return on assets iv) Quick ratio = Cash / Current liabilities

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 34MCQ: Which of the following ratios is used to measure a firms profitability? a. Liabilities Ă· Equity c....

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Question

Which one of the following formulas is correct?
O i) Profit margin = EBIT / Sales
ii) ROA = ROE / Equity multiplier
%3D
O ii) Capital intensity ratio = 1 / Return on assets
O iv) Quick ratio = Cash / Current liabilities

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