Identify if the following are liquidity, profitability or
solvency ratios and explain what each of the following tells us
about a company (matching)
a Inventory turnover
b Quality of income
c Net profit margin
d Times interest earned
e Debt to assets
f Fixed asset turnover
g Receivables
turnover
h Earnings
per share
i Quick ratio
j Current
ratio – know calculation
There are three broad categories of financial ratios: liquidity,
solvency, and profitability. Discuss what each category reveals
about the company being analyzed. Give examples of ratios that are
affected by inventory, and discuss changes a manager might make to
improve the financial ratio.
There
are three broad categories of financial ratios: liquidity,
solvency, and profitability. Discuss what each category reveals
about the company being analyzed. Give examples of ratios that are
affected by inventory, and discuss changes a manager might make to
improve the financial ratio.
There are three broad categories of financial ratios: liquidity,
solvency, and profitability. Discuss what each category reveals
about the company being analyzed. Give examples of ratios that are
affected by inventory, and discuss changes a manager might make to
improve the financial ratio.
There are three categories of financial ratios: liquidity,
solvency, and profitability. Using the SEC data for Macys, found
here:
https://www.sec.gov/cgi-bin/viewer?action=view&cik=794367&accession_number=0000794367-18-000036&xbrl_type=v#
Describe what each category tells the user about the financial
health of a company.
Choose three ratios in each category and describe what the
ratios tell the user about the company.
How are financial ratios used to evaluate a company?
Discuss what the numbers would be compared against for
analysis.
Calculate each ratio for your companies.
What do the ratios...
1. Choose the best measure for each of the three (profitability,
liquidity, and solvency - that means one measure for profitability,
one measure for liquidity and one for solvency). 2. Give one reason
why you chose that measure. 3. Does the measure provide information
that is more useful for investors or creditors?
There are several types of financial ratios. The most
common include; liquidity ratios, profitability ratios, solvency
ratios, and activity ratios. What does each category measure? Give
an example of each.
List at least 5 solvency ratios, 5 liquidity ratios, and 5
profitability ratios, showing the formula for each and a brief
explanation of why they are useful.