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Category: Finance
Why is it sometimes misleading to compare a company's financial ratios with those of other firms that operate in the same industry?
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Category: Finance
How might (a) seasonal factors How might and (b) different growth rates distort a comparative ratio analysis? Give some examples. How might these problems be alleviated?
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Category: Finance
Financial ratio analysis is conducted by managers, equity investors, longterm creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?
1
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Category: Finance
Over the past year, M. D. Ryngaert & Co. has realized an increase in its current ratio and a drop in its total assets turnover ratio. However, the company's sales, quick ratio, and fixed assets turnover ratio have remained constant. What explains these changes?
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Category: Finance
Define each of the following terms: a. Liquidity ratios: current ratio; quick, or acid test, ratio b. Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio c. Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; EBITDA coverage ratio d. Profitab...
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