Financial Analysis Tems Required A company\'s ablity to continue in business in

ID: 2560955 • Letter: F

Question

Financial Analysis Tems Required A company's ablity to continue in business in the long term by Return on assets an equity into three Debt to equity ratio A comparison of net income to average total assets during the period Rers to . company's ability to meet its short-term obligations Times interest earned The practice of obtaining debt rathe capital t Financiai leverage A comparison of total labilities to total stockholders equity A measure of how often a company turns over its receivables balance during the Debt to assets ratio

Explanation / Answer

1) a company’s ability to continue in business in the long term by satisfying long term obligations?

Answer : solvency

2) a technique that breaks return on equity into three components?

Answer : Du Pont analysis

3) a comparison of net income to average total assets during the period ?

Answer : Return on assets

4) refers to company’s ability to meet its short term obligations ?

Answer : liquidity

5) the practice of obtaining capital trough debt rather than equity to increase returns for the shareholder ?

Answer : financial leverage

6) a comparison of total liabilities to total shareholders equity ?

Answer :Debt to equity ratio

7) a measure of how often a company turnover its receivables balances during the year?

Answer :Receivables to turnover ratio

8)a comparison of net income before interest and taxes to interest expense ?

Answer : time interest earned ratio

9)net income presented on per share basis ?

Answer: Earning per share

10)a comparison of total liabilities to total assets ?

Answer : debt to asset ratio

(or)

1)) a company’s ability to continue in business in the long term by satisfying long term obligations

Solvency

2) a technique that breaks return on equity into three components

Du Pont analysis

3) a comparison of net income to average total assets during the period

Return on assets

4) refers to company’s ability to meet its short term obligations

liquidity

5) the practice of obtaining capital trough debt rather than equity to increase returns for the shareholder

financial leverage

6) a comparison of total liabilities to total shareholders equity

Debt to equity ratio

7) a measure of how often a company turnover its receivables balances during the year

Receivables to turnover ratio

8)a comparison of net income before interest and taxes to interest expense

time interest earned ratio

net income presented on per share basis

Earning per share

10)a comparison of total liabilities to total assets

debt to asset ratio