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What are equivlent ratios?
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
What are the three types of ratios?
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
What are 3 types of ratios?
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
Are ratios percents?
No but percentages are ratios.
Are two ratios always equal to each other?
No but the equal ratios are called Equivalent Ratios.
How are ratios classified?
Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
What financial ratio is the best measure of the operating effectiveness of a firm's management?
quick ratios
Investors and financial analysts wanting to evaluate the operating efficiency of a firm's managers would primarily look at what type of ratios?
Investors and financial analysts evaluating a firm's operating efficiency typically focus on efficiency ratios, such as inventory turnover, accounts receivable turnover, and asset turnover ratios. These ratios measure how effectively a company utilizes its assets and manages its operations to generate sales. Higher ratios indicate better performance in managing resources, while lower ratios may signal inefficiencies. Additionally, operating margin can also provide insights into the efficiency of the firm's cost management relative to its revenue.
How do you reduce cash operating cycle?
you use various ratios that identify the time taken which then allow you to take actions.
How are expense ratios typically paid for investment funds?
Expense ratios for investment funds are typically paid by deducting a small percentage of the fund's assets on an annual basis. This fee covers the fund's operating expenses and is automatically taken from the fund's returns.
Why operating lease are called off balance sheet?
Operating lease are called off-balance sheet because in operating lease asset is not transferred to balance sheet as it is not in full ownership of business so in this way company enjoys to use assets without affecting asset turnover ratios.
What are equivlent ratios?
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
Which ratios can be used to measure efficiency?
Efficiency can be measured using several financial ratios, including the asset turnover ratio, which indicates how effectively a company generates sales from its assets, and the inventory turnover ratio, which assesses how well inventory is managed by comparing sales to inventory levels. Additionally, the operating margin ratio reflects the efficiency of a company's core business operations by measuring the proportion of revenue that remains after covering operating expenses. These ratios provide insights into how well resources are utilized to generate profits.
Ratios?
Ratios
How are expense ratios charged for investment funds?
Expense ratios for investment funds are charged as a percentage of the fund's total assets, typically on an annual basis. This fee covers the fund's operating expenses, such as management fees and administrative costs, and is deducted from the fund's returns before they are distributed to investors.
What ratios best measures the profitability of a company?
The most effective ratios for measuring a company's profitability include the gross profit margin, operating profit margin, and net profit margin. The gross profit margin assesses how well a company manages its production costs relative to revenue, while the operating profit margin evaluates the efficiency of operations. The net profit margin provides a comprehensive view of overall profitability after all expenses, taxes, and interest have been deducted. Together, these ratios offer valuable insights into a company's financial health and operational efficiency.
What are the three types of ratios?
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
