GK
ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Solvency Ratio
|
|
|
Liquidity Ratio
|
|
|
Turnover Ratio
|
|
|
Profitability Ratio
|
Detailed explanation-1: -Basic Earning Power (BEP)-A firm’s earnings before interest and taxes (EBIT) divided by its total assets. It shows the earning ability of a firm’s assets before the influence of taxes and interest (leverage).
Detailed explanation-2: -Return on total assets ratio definition The return on total assets ratio is obtained by dividing a company’s earnings after tax by its total assets. This profitability indicator helps you determine how your company generates its earnings and how you compare to your competitors.
Detailed explanation-3: -The asset turnover ratio measures is an efficiency ratio that measures how profitably a company uses its assets to produce sales.
Detailed explanation-4: -Common profitability ratios used in analyzing a company’s performance include gross profit margin (GPM), operating margin (OM), return on assets (ROA), return on equity (ROE), return on sales (ROS) and return on investment (ROI).
Detailed explanation-5: -Gross Profit Ratio. Operating Ratio. Operating Profit Ratio. Net Profit Ratio. Return on Investment (ROI) Return on Net Worth. Earnings per share. Book Value per share. More items