Question: PART 1) Statement of the Assignment : Please prepare a comprehensive list of financial ratios . Write a brief explanation below each financial ratio, e.g.
PART 1) Statement of the Assignment:
Please prepare a comprehensive list of financial ratios . Write a brief explanation below each financial ratio, e.g. what does the financial ratio measures or what the significance of it is.
For example:
Current Ratio = Current Assist / Current Liabilities
Current ratio measures whether our current assets, if liquidated, are sufficient to pay all of our current liabilities. A CR of 1.5, for example, shows that if we were to liquidate all of our current assets, we will be able to cover 1.5x our current liabilities, whereas a CR of 0.5 shows that liquidating our current assets only covers half of our current liabilities.
THE FOLLOWING RATIONS ARE THE RATIONS I NEED. CAN I GET AN ANSWER EACH ONE OF THEM. (EACH BULLET POINT) please explain each ration, its process and how each one of them it is used
Asset management, Or turnover, measures
Receivables Turnover = sales / accounts receivable
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NWC turnover= sales / NWC
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Fixed asset turnover = sales/ net fixed assets
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Total asset turnover = sales/ total assets
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Return on equity = net income / total equity
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EPS = net income/ Shares outstanding
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PE= price per share / earning per share
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Market to book ratio= market value per share / book value per share
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Enterprise value= total market value of the stock + book value of liabilities cash
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EBITA Ration= enterprise value/ EBITDA
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