D076 unit 4 - Study guides, Class notes & Summaries

D076 UNIT 4 (36 questions fully solved ).

D076 Unit 4 already graded A+ 2024/2025

Trend Analysis - ANSWER-Comparing a firm's ratios across time. Cross Sectional Analysis - ANSWER-Comparing a firm's financial ratios to other firms' ratios or industry averages. Benchmarking - ANSWER-The process of completing a financial analysis to compare a firm's financial performance to that of other similar firms. Seasonal Firms - ANSWER-Firms whose performance varies according to the season. Liquidity Ratios - ANSWER-A category of ratios that measure a firm's ability to me...

Ratios are useful for analyzing and comparing company performance for at least four different reasons: - Standardization Flexibility Focus Evaluation You can standardize the companies' net incomes by - dividing both by the total sales of those companies. This will help you to see how much income in percentage terms was earned from the total sales made during the year. Standardization - ratios standardize financial data, thus making it comparable across firms—even those of distinctly ...

Ratios are useful for analyzing and comparing company performance for at least four different reasons: - Standardization Flexibility Focus Evaluation You can standardize the companies' net incomes by - dividing both by the total sales of those companies. This will help you to see how much income in percentage terms was earned from the total sales made during the year. Standardization - ratios standardize financial data, thus making it comparable across firms—even those of distinctly ...

liquidity ratio - is a measure of not only how much cash you have but also how easily you can convert short-term assets into cash. activity ratio - the firm's operational efficiency and profitability. activity ratio - efficiency ratio leverage ratio - financing ratios or solvency ratios leverage ratio - how the firm is financed. profitability ratio - based on either sales or asset investment market ratios - used to evaluate the current share price of a public firm's stock. liquidity ra...

Firm A has an average collection period of 67 days, and the industry norm is 40 days. What can the firm do in order to be competitive with accounts receivable management in the industry? - Tighten the credit standards for its customers. MiniCo recently spun off of BigCo. Both companies have the same leverage and asset turnover ratios, but MiniCo is underperforming on its return on equity to shareholders. If MiniCo would like to improve its return on equity, which action would help? - Reduce...

Ratios are useful for analyzing and comparing company performance for at least four different reasons: - Standardization Flexibility Focus Evaluation You can standardize the companies' net incomes by - dividing both by the total sales of those companies. This will help you to see how much income in percentage terms was earned from the total sales made during the year. Standardization - ratios standardize financial data, thus making it comparable across firms—even those of distinctly ...

Ratios are useful for analyzing and comparing company performance for at least four different reasons: - Standardization Flexibility Focus Evaluation You can standardize the companies' net incomes by - dividing both by the total sales of those companies. This will help you to see how much income in percentage terms was earned from the total sales made during the year. Standardization - ratios standardize financial data, thus making it comparable across firms—even those of distinctly ...