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Exam 4: Financial Statement Analysis

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Question 91

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Which of the following is an asset-management measure?

A) return on assets
B) times-interest-charges
C) average collection period
D) current ratio

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Question 92

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The average collection period measures how many days it takes for ________________________ to pay their bills.

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Question 93

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What is most likely to have a ratio of 1.86 times?

What is related to a company's performance under the DuPont financial system?

-The profit margin on revenue ratio is: _________________

Minimizing liquidity is an excellent way to meet a company's short-term financial obligations.

Which ratio measures how well a company can pay its interest on debt plus lease payments?

Vertical analysis shows the similar type of information as the technique used for horizontal analysis.

-Debt-to-equity is: _____________

-Average collection period is: _____________

Match the words with the term. -average collection period

-measures ROA

What is the current ratio based on these numbers?

Ratio analysis helps readers of financial statements assess the financial structure and profitability performance of businesses.

Maintaining ___________________________ is a financial objective that can help businesses service or pay all debts (short and long-term).

Match the words with the term. -fixed-charges coverage ratio

By dividing the profit for the year number by total assets, you obtain the ratio called _________________ on total assets.

-The profit margin on revenue ratio is: _________________

Which of the following ratios tells us how management is managing the largest current asset in a company such as Future Shop or Best Buy?

___________________________ ratio indicates how much investors are willing to pay per dollar of reported profits.