A firm that wants to know if it has enough cash to meet its bills would be most likely to use which kind of ratio?
A) Liquidity
B) Leverage
C) Efficiency
D) Profitability
In the times-interest-earned ratio, dividend payments are included in
A) the numerator.
B) the denominator.
C) both the numerator and the denominator.
D) neither the numerator nor the denominator.
Assume that a particular firm has a total asset turnover ratio lower than the industry norm. In addition, this firm's current ratio and fixed asset turnover ratio also meet industry standards. Based on this information, we can conclude that this firm must have excessive
A) accounts receivable.
B) fixed assets.
C) debt.
D) inventory.
Assume that a particular firm has a total asset turnover ratio lower than the industry norm. In addition, this firm's current ratio and acid test ratio also meet industry standards. Based on this information, we can conclude that this firm must have excessive
A) accounts receivable.
B) fixed assets.
C) debt.
D) inventory.
A firm is conducting an analysis of trends over time and discovers that its inventory turnover has declined. This may be due to
A) an increase in sales.
B) an increase in cost of goods sold.
C) an increase in inventory purchases.
D) a decrease in inventory purchases.
If the total asset turnover decreases, then the return on equity will
A) decrease.
B) increase.
C) not change.
D) change, but in an indeterminate way.
