What aspect of a business firm's operations is reflected in its ratio of cost of goods sold to net sales? In its ratio of net sales to total assets? In its GPM ratio? In its ratio of income before interest and taxes to total interest payments? In its acid-test ratio? In its ratio of before-tax net income to net worth? In its ratio of total liabilities to net sales? What are the principal limitations of these ratios?
Answer to relevant QuestionsWhat are contingent liabilities, and why might they be important in deciding whether to approve or disapprove a business loan request?What are the principal strengths and weaknesses of the different loan-pricing methods in use today?Blue Jay Corporation is a new business client for First Commerce National Bank and has asked for a one-year, $10 million loan at an annual interest rate of 6 percent. The company plans to keep a 2.75 percent, $3 million CD ...Are there any significant disadvantages to a credit-scoring system?How is the changing age structure of the population likely to affect consumer loan programs? What other forces are reshaping household lending today?
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