Which ratio would you choose if you wanted to measure each of the following? 1.How well receivables
Question:
Which ratio would you choose if you wanted to measure each of the following?
1.How well receivables are being collected
2.How quickly the inventory moves
3.Inventory Turnover
4.The length of time vendors/suppliers wait to be paid.
5.How well the firm controls direct costs.
6.The firm’s ability to service its debt
7.The portion of assets supported by debt.
8.The firm’s ability to meet its short-term obligations.
9. How the market values the firm’s earnings
Here is the option to choose from
Days sales in receivables
inventory turnover
days payable outstanding
gross profit margin
times interest earned.
debt to equity
quick ratio
earnings per share
price earnings ratio
net profit margin
working capital turnover
return on equity.
asset turnover
current ratio
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello