Finance Chapter 3

long term debt and times interest earned

mortgage lenders probably have the most interest in the ______________ ratios.

the three parts of the dupont equation

profit margin, total asset turnover, and equity multiplier

Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as _____ ratios

profitability

a common size income statement is an accounting statement that expresses all of a firms expenses as a percentage of:

sales

ratios to the company's historical ratios

the most acceptable method of evaluating the financial statements is to compare the company's current financial...

dupont identity

this identifies the relationship between the return on assets and the return on equity

equity multiplier, profit margin, and total asset turnover

what accurately describes the three parts of the DuPont identity?