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The Learning Materials (This is the bases how will you solve the ratios) THE FOLLOWING ARE THE PROBLEM PLEASE BASED YOUR ANSWER BASED ON THE
The Learning Materials (This is the bases how will you solve the ratios)
THE FOLLOWING ARE THE PROBLEM
PLEASE BASED YOUR ANSWER BASED ON THE LEARNING MATERIALS OR ELSE I WILL GIVE THUMBS DOWN. THANK YOU FOR THE HELP!
The return on assets is also expressed as a percentage. Return on assets = Net Profit / Total assets It measures how effectively the company uses its assets to drive profits. The net profit is the bottom line of the company. It is the profit after cost of goods sold, overhead expenses, interest expense and taxes have been deducted from sales. Return on equity = Net profit / Shareholder equity This is also expressed as a percentage. It measures management's ability to generate an adequate return on the invested capital. Other Ratios Used 1. Liquidity ratios, such as current ratio 2. Valuation ratios, such as price-to-earnings ratio Current Ratio = Current assets / Current liabilities It indicates a company's ability to pay its short-term obligations. Price-earnings ratio = Share price / Earnings per share It helps an investor determine if a company is undervalued or overvalued with respect to industryStep by Step Solution
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