When an entrepreneur is trying to determine how management decisions have impacted the business for the past year, what four areas are critical? What ratios would need to be calculated to find answers?
What will be an ideal response?
1. The firm's ability to pay its short-term debt as it comes due (current ratio)
2. The company's profitability from the assets (return on assets, operating profit margin, total asset turnover)
3. The amount of debt the firm is using (debt ratio)
4. The rate of return earned on the equity investment (return on equity).
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A manufacturer of premium wire strippers has supplied the following data: Units produced and sold 580,000Sales revenue$4,176,000Variable manufacturing expense$2,871,000Fixed manufacturing expense$778,000Variable selling and administrative expense$348,000Fixed selling and administrative expense$104,000Net operating income$75,000The company's degree of operating leverage is closest to:
A. 7.73 B. 55.68 C. 12.76 D. 3.65
In their battle for chocolate lovers, Godiva and Hershey's must divide the population into different categories of consumers, for example, luxury versus cost-conscious, those looking for a quick energy boost versus those looking for a gift for a loved one.
Answer the following statement true (T) or false (F)
The leading cause of absenteeism in the United States is:
A. personal illness. B. stress. C. family-related issues. D. entitlement mentality.
All of the following statements about the boatowners package policy are true EXCEPT
A) Physical damage coverage for the boat is usually written to cover all losses except those losses specifically excluded. B) Liability coverage is provided for bodily injury only. C) Some policies provide optional uninsured boaters coverage. D) Medical payments coverage for water-skiers is available under the policy.