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what tw ratios measure factors

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11y ago

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profitability ratios?

these are ratios which analyze profitability of a company. higher ratios imply higher profitability and value of a company.


What are operating ratios?

Operating ratios are types of ratios that serve as gauges of a company's operating success (or profitability) for a given period of time. They are also known as profitability ratios.


What are the measures of profitability?

Profitability is an important factor when running a business. Businesses calculate profitability in many ways, but figuring out profits after expenses is their goal. Profitable ratios is a measure of profitability that can be used to assess a business's ability to generate earnings.


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


Types of ratios?

1 - Actiivty raios 2 - turnover ratios 3 - Profitability ratios 4 - Liquidity Ratios


types of profitability ratios?

there are many profitability ratios which are calculated. some of them are:profit marginoperating margintotal asset turnoverreturn on assets (ROA)return on equity (ROE)


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 are four major financial ratios?

Liquidity, Profitability, Leverage, and Activity/Efficiency


Which of the following ratios would tell an investor about the profitability of the organization?

a propretary ratio


Which financial ratios are used by banks?

1. Liquidity Ratios - Ability of the company to pay off debt 2. Activity Ratios - How quickly a firm can convert its non-cash assets to cash assets 3. Debt Ratios - Ability of the firm to repay long-term debt 4. Profitability Ratios - To Measure the firms use of its assets and control of its expenses to generate an acceptable rate of return 5. Market Ratios - To Measure the investor response to owning a company's stock and also the cost of issuing stock


Who would interested in the profitability ratios of a business?

Investors and shareholders are primarily interested in the profitability ratios of a business, as these metrics help assess the company's financial health and potential for returns on their investments. Additionally, creditors and lenders analyze these ratios to evaluate the business's ability to generate sufficient profits to meet debt obligations. Management may also use profitability ratios to make informed strategic decisions and improve operational efficiency.