Liquidity and Efficiency
The ability to turn an asset into cash ___, lower ___ usually means lower profitability for a companies assets.
What is liquidity?
The ability to meet long-term debts and/or long-term obligations, analysis of ___ is more long-term than liquidity and requires more "broader" measures.
What is solvency?
=(net sales - cogs)/net sales
What is gross profit ratio or gross profit margin?
market price per common share/earnings per share=
What is price-earnings ratio?
A companies ability to meet short-term obligations is calculated using the ___
total liabilities/total equity
What is debt-to-equity ratio?
The equation for return on total assets, this shows us what of profit margin?
(net income/net sales) * (net sales/average total assets) = (net income/average total assets)
What is relation between profit margin, total asset turnover, and return on total assets?
Find Apple's pe ratio:
Market price for common stock: $293.65
Cash dividends: $3.00
Basic earnings: $11.97
What is 24.5?
Cash, short-term investments, and current receivables are all examples of ____. These are used when calculating the Acid-test ratio or the, quick ratio.
What are quick assets?
The larger this ratio is, the less risky the company is for creditors
What is times interest earned?
Return on equity shows us a companies ability to earn an income for its shareholders, what is the return on equity for Apple?
Net income: $55,256
Current equity: $107,147
Prior yrs equiity: $90,488
What is 55.9%?
Market yield is used to compute the company's ability to pay dividends.
What is false, Dividend yield?
Used to evaluate a company's inventory liquidity, different from Days' Sales Uncollected, how frequently a company collects a/r
What is Days' Sales in Inventory?
A company's ___ matters because the analysis provides creditors with security and shows a company's ability to meet obligations.
What is capital structure?
Higher return on equity and return on assets means that
What is a company has a good profit margin?
annual cash dividends per share/market price per share
What is dividend yield?
=(net sales/average(a/r cell: a/r cell)
What is formula for calculating accounts receivable turnover?
Equity can increase income for stockholders because of the possibility that there is a higher return than interest paid earned by the company.
What is false, debt?
The amount of each dollar left over after all operating expenses, used to determine if the company will yield a profit.
What is gross profit margin ratio?
Find Apple's dy ratio:
Market price for common stock: $293.65
Cash dividends: $3.00
Basic earnings: $11.97
What is 1.0%?