What ratios would you use to evaluate operating leverage for a firm?
Answer to relevant QuestionsWhat are the potential benchmarks that you could use to compare a company’s financial ratios? What are the pros and cons of these alternatives?What factors are likely to drive a firm’s outlays for new capital (such as plant, property, and equipment) and for working capital (such as receivables and inventory)? What ratios would you use to help generate forecasts ...Given the information in Question 3, what will be Manufactured Earnings’ stock price if the market revises its expectations of long-term average ROE to 20 percent?Recalculate the forecasts in Tables 8-2 assuming that the ratio of net operating working capital to sales is 3 percent, and the ratio of net long-term assets to sales holds steady at 33.4percent for all the years from fiscal ...Geoffrey Henley, a professor of finance, states: “The capital market is efficient. I don’t know why anyone would bother devoting their time to following individual stocks and doing fundamental analysis. The best approach ...
Post your question