1.
Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.
The profit margin and the return on total assets.
2.
Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.
The preferred company for investment.
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NOVA CC - ACC 211: Connect for Financial and Managerial Accounting with PROCTORIO PLUS
- based on the attached what is the answer?arrow_forwardThe assumptions on which cost-volume-profit analysis is based appear to be most valid for businesses: over the long run. over both the short run and the long run. in periods of increasing sales. over the short run. in periods of sustained profits.arrow_forwardHEB grocery How can the contribution margin be used to determine the profitability of HEB grocery company products and how could it be used to make the operations more profitable?arrow_forward
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- You are asked to briefly answer the following questions:Profitability ratios are a set of ratios that indicate how profits relate to sales and the size of a company's capital, and this category includes various ratios such as: Gross Profit Margin Ratio, Net Profit Margin Ratio, Return on Assets Ratio and Return on Equity Ratio of funds. One of the top executives at the company where you work is asking for your help in understanding the following:1. How the above efficiency indicators are calculated.2. The company decided to pay cash to suppliers to achieve better purchase prices. What is the effect of this fact on the value of the aforementioned efficiency indicators?3. Could (beyond the above fact) be affected in any way positively the figures in question for the company where you work?arrow_forwardWhich of the following statements is true? Return on investment (ROI) equals margin multiplied by sales. When used in return on investment (ROI) calculations, turnover equals sales divided by average operating assets. An advantage of using ROI to evaluate performance is that it encourages the manager to reduce the investment in operating assets as well as increase net operating income.arrow_forwardFor CVP analysis calculations, which of the following statements is correct? A. In target profit calculations, sales revenue is less than total costs. B. CVP analysis relies on our knowledge of cost function to express relationships among costs, sales volume, and profit. OC. A company's sales mix is ultimately determined by the management of a company. D. The Break-even point is the point at which operating income is greater than $0. O E. If sales volume is expected to be higher than the indifference point, management should choose the cost structure with the higher fixed costs.arrow_forward
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