What do Net Income/Sales, EBITDA/Sales and COGS/Sales have in common? Question 1 options: a) All are Leverage

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What do Net Income/Sales, EBITDA/Sales and COGS/Sales have in common? Question 1 options:

a) All are Leverage ratios because each compare debt to cash flow to determine if the obligor is able to satisfy these obligations.

b) All are Profitability ratios because they focus on Income Statement.

c) All are Liquidity ratios because they indicate how easily a company can pay its obligations.

d) All are Efficiency ratios because they include both balance sheet and income statement accounts in each ratio

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1285190907

8th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Feb 12, 2024 05:25 AM

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What do Net Income/Sales, EBITDA/Sales and COGS/Sales have in common? Question 1 options: a) All are Leverage

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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