0
Which group of ratios shows the extent to which the firm is financed with debt?
Wiki User
∙ 11y ago
liquidity ratio
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is a solvency ratio used for?
A solvency ratio measures a insurers risk of claims it cannot absorb. Basically it is its capital relative to premiums written. One could say it shows that the insurer could cover all its policies.
What is volatility in forex?
Volatility is the range in which the price of a financial instrument fluctuates and is one of the most significant indicators to highlight the attractiveness of a trading instrument. Volatility shows the extent of risk involved in using an instrument since the higher the indicator, the bigger the range in which the rate changes over a specified amount of time.
What is the ideal Current Ratio of a firm?
Liquidity and debt-equity ratios are widely used financial ratios. Liquidity ratio, also called the 'short-term solvency' ratio shows the adequacy or otherwise of working capital for a company's day-to-day operations. It is calculated as current assets/current liabilities. An ideal current ratio would be 2, indicating that even if the current assets are to be reduced by half, the creditors will be able to able to get their money in full. But a lot depends on the composition of current assets. If a substantial portion of the current assets is made of slow-moving/obsolete stocks or if the debtors comprise ageing debts, the company may not be able to pay the creditors even if the current ratio is higher than 2.
What is the Importance of liquidity ratio to shareholders?
liquidity ratio's are important to shareholders because in a way the ratio's show them if the business is worth investing in. if a business has bad liquidity ratios because they ant payy off their debts, people are less likely to invest because they have they don't wnat to pay off other people debts. the ratio that shareholders are really interest in is return on capital employed because it shows how the net profit is distributed.
Simple circular flow model shows that?
A simple circular flow model shows the flow of goods and services through the economy. It is basically a model that shows supply and demand in an economy.
What shows which elements are in compound and their ratios?
A formula shows constituent elements and their ratios. In the formula Al2O3, you can see aluminum and oxygen bonded in a 2-3 ratio.
What is an equation that shows the two ratios are equivlant?
AA
What is An equation that shows that ratios are equivalent?
That's a " proportion ".
Is an equation that shows two equivalent ratios?
A proportion
What is an equation that shows two equivalent ratios?
It is called a proportion.
What shows elements are in a compound and their ratios?
This is the chemical formula.
An equation that shows that two ratios or rates are equivalent?
Proportion
What is an equation that shows that two ratios or rates are equivalent?
scale factor
What shows how installment loans are calculated?
amount financed= cash price- down payment
What equation shows how installments loan are calculated?
amount financed = cash price - down payment
solvency analysis?
this is an analysis of leverage of a company. it also shows if a company is financed by debt or by equity. debt financed companies are riskier compared to equity financed companies. some ratios calculated here are:a) Debt equity ratioDebt equity ratio = Total debt / Total equityb) Debt ratioDebt ratio = Total debt / Total assets
What is a composition of a compound shown by?
The chemical formula of the compound. This shows the composition directly in atomic ratios, which can be converted to mass ratios by using the atomic weights of each element in the compound.
