Principles of Managerial Finance, Student Value Edition Plus NEW MyLab Finance with Pearson eText -- Access Card Package (14th Edition)
Principles of Managerial Finance, Student Value Edition Plus NEW MyLab Finance with Pearson eText -- Access Card Package (14th Edition)
14th Edition
ISBN: 9780133740912
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
Question
Book Icon
Chapter 3, Problem 3.23P

a)

Summary Introduction

To discuss: Cross sectional ratio analysis.

Introduction:

Financial ratio analysis: It is a tool of financial analysis that represents the relationship between two or more items of the financial statement. It can be divided into following areas.

Liquidity Ratios: The liquidity ratios gives the idea of whether the company can settle its liabilities or short term obligations, which has less than one year maturity.

Activity ratio: An activity ratio assesses the efficiency of a firm in converting various accounts into cash or sales.

Debt ratio: It is the degree of indebtedness that is the firm’s amount of debt financing and its ability to meet fixed charges.

Profitability ratio: The profitability ratio focuses on the ability of the firm to make a profit on sales, assets or equity and shows the total effect of other ratios on the operating results.

b)

Summary Introduction

To discuss: Summarising the findings.

Blurred answer

Chapter 3 Solutions

Principles of Managerial Finance, Student Value Edition Plus NEW MyLab Finance with Pearson eText -- Access Card Package (14th Edition)

Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education