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can you please explain what i am supposed to do. or explain the terms so i can apply them to my assignmet. thank you. Using
can you please explain what i am supposed to do. or explain the terms so i can apply them to my assignmet. thank you.
Using ratio analysis, apply the ratios as follows: Profitability ratios O Profit margin = net income/sales O ROA investment) = Net income total assets or net income/sales x sales/total assets O ROE = a) NI/Stockholder's equity or b) ROA investment)/(1- debt/assets) Asset Utilization Ratios o Receivable turnover = credit sales/receivables o Avg collection period = A/R/avg. daily credit sales o Inventory turnover = sales/inventory O Fixed asset turnover = sales/fixed assets o Total asset turnover = sales/total assets Liquidity ratios O Current ratio = current assets/current liabilities o Quick ratio = (current assets - inventory)/ current liabilities Debt Utilization ratios o Debt to total assets = total debt/total assets o Times Interest Earned Income before interest & taxes/ interest o Fixed charge coverage = Income b/f fixed charges and taxes/ fixed charges Step by Step Solution
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