Asset utilization ratios A. relate assets to sales. B. measure how much cash is available for reinvestment into current assets. C. are most important to stockholders. D. measures the firm's ability to generate profit on sales. E. none of the above
Asset utilization ratios A. relate assets to sales. B. measure how much cash is available for reinvestment into current assets. C. are most important to stockholders. D. measures the firm's ability to generate profit on sales. E. none of the above
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 27MCQ
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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