Briefly explain, in your own words, what each of the following ratios helps the analyst to assess

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Briefly explain, in your own words, what each of the following ratios helps the analyst to assess and whether the analyst would generally perceive an increase in the ratio as a positive change.

a. Debt to equity ratio

b. Net debt as a percentage of total capitalization

c. Interest coverage

d. Cash flows to total liabilities

e. Gross margin

f. Profit margin

g. Return on equity

h. Return on assets

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Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

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