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Working capital is a measure of a company's efficiency and its financial health. A measure of a companies efficiency is an example of working capital.
to what extent does profitability of a firm measure its efficiency
Working capital is defined as "a measure of both a company's efficiency and its short-term financial health." It is a ratio calculated with this formula: current assets - current liabilities = working capital.
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. Working capital is defined as the difference between a company's current assets and current liabilities.
An income statement shows the profitability of an entity. Profitability can be a measure that investors and shareholders rely on to make their decisions.
Working capital is a measure of a company's efficiency and its financial health. A measure of a companies efficiency is an example of working capital.
Internal Rate of Return is used in capital budgeting. Its primary purpose is to better measure the profitability of investments and to compare this profitability.
to what extent does profitability of a firm measure its efficiency
Generally I would not use Net Income as a measure of liquidity. Net Income is a good measure of profitability, but it does not indicate a company's ability to meet short-term obligations. Some good measures of liquidity include working capital, the current ratio, and the quick ratio.
current retio
Working capital is defined as "a measure of both a company's efficiency and its short-term financial health." It is a ratio calculated with this formula: current assets - current liabilities = working capital.
earnings per share
It measures the effeciency of worling capital in producing enough sales.
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. Working capital is defined as the difference between a company's current assets and current liabilities.
what tw ratios measure factors
Profitability is an important factor when running a business. Businesses calculate profitability in many ways, but figuring out profits after expenses is their goal. Profitable ratios is a measure of profitability that can be used to assess a business's ability to generate earnings.
An income statement shows the profitability of an entity. Profitability can be a measure that investors and shareholders rely on to make their decisions.