Assets: Inventory 25000 Other current assets 100000 Long term assets 75000 Total assets 200000 Liabilities: Current liabilities 50000 Long term liabilities 150000
Total assets less net fixed assets equals
net profit devided by total assets is called return on total asset and formula is as follows: Return on total assets = Net profit / total assets.
Total assets less net fixed assets equals
debt to assets ratio
Net worth = OE/Assets
Net Income divided by Average Total Assets
True
ROE divided by ROA isi the equity multiplier, which is also equal to total assets divided by total equity.
total assets divided total cost of goods sold
A. It is Liquidity ratio. It is related to the Working capital which defines the extent of a company's liquidity, or its capability to pay off short term debts.
Total long term funds. This comprises: 1. Shareholders Equity; and 2. Long Term Loans