Holding all other factors constant, indicate whether each of the following changes generally signals good or bad
Question:
(a) Increase in profit margin ratio.
(b) Decrease in inventory turnover ratio.
(c) Increase in current ratio.
(d) Decrease in earnings per share.
(e) Increase in price-earnings ratio.
(f ) Increase in debt to total assets ratio.
(g) Decrease in times interest earned ratio.
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...
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a The increase in the profit margin ratio is good news because it means that a greater percentage of ...View the full answer
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Related Book For 
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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