Financial Ratio 2 - Interpretation

1. Debt: Interest Coverage Ratio [ EBIT/int. exp] : - would it make sense to use the cash version of EBIT?
2. Return on Assets [operating return on assets = ROA = operating Profits / Total Assets] - Any linkage between ROA and Valuation equation [ V0 = CF/(1+r)^t ] ?
3. Operating Profit Margin [OPM = EBIT/ SALES]: - what pictures of operating efficiency do ROA and OPM give to us?
4. Asset Turnover [Sales/ Assets]
   1. This is similar to inventory turnover and A/R turnover?
   2. What type of asset should be used in calculating asset turnover?
5. Total Asset Turnover Vs. Fixed Asset Turnover: how do the meaning of two different schemes differ?
6. Return on Shareholders [ROE= Net income / Equity*] *Equity = total common equity + retained earning
7. 1. Should net income (NI) be before or after the tax expense?
   2. Do we want to see ROE without the tax effect?
   3. How does ROE economically differ from ROA? [ or the things that ROA cannot reveal ]