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the price-earnings ratio ( or P/E, as its is commonly called ) is influenced by :
1- the earnings and the sales growth of the firm.
2- the risk ( or volatility in performance )
3- the debt equity structure of the firm.
4- the dividend payment policy.
5- the quality of management.
What else can I help you with?
Use of regression and financial ratio for analysis?
Regression can be used to predict any increase of default when macroeconomic variables are added in a financial ratios model. Regressions can begin with ratios initially, but also can be adjusted when other variables are included.
Would you prefer a low debt to equity ratio for your financial situation?
Yes, a low debt to equity ratio is generally preferred for a more stable financial situation. This ratio indicates lower financial risk and a stronger financial position.
What are the Benefits of financial ratio analysis?
One of the main benefits of financial ratio analysis is that it simplifies financial statements. Another advantage is that vital information is easily highlighted.
Which financial ratio is the best measure of the operating effectiveness of a firms management?
current ratio
Ratio in isolation provide into the financial performance and financial position?
rations in isolation reveal little about financial position and financial performance of business.
What are some financial variables that affect the price earnings ratio?
interest rate
Use of regression and financial ratio for analysis?
Regression can be used to predict any increase of default when macroeconomic variables are added in a financial ratios model. Regressions can begin with ratios initially, but also can be adjusted when other variables are included.
Is interval and ratio variables are also called metric variable?
Yes, interval and ratio variables are often referred to as metric variables. Both types of variables are quantitative and allow for meaningful comparisons between values, including the calculation of averages and the assessment of differences. The key distinction is that ratio variables have a true zero point, while interval variables do not.
What is the relationship in which the ratio of the manipulated variables and the responding variables is constant?
Direct Proportion
What is a comparison of numbers or variables that can be written in fraction form?
It is a ratio.
What is the ratio of two variables called?
Quotient.
What is ratio analysis and importance of ratio analysis in financial management?
what is ratio analysis
Would you prefer a low debt to equity ratio for your financial situation?
Yes, a low debt to equity ratio is generally preferred for a more stable financial situation. This ratio indicates lower financial risk and a stronger financial position.
What are the scopes of financial ratio analysis?
scope of ratio analysis
What is a comparison of numbers or variables that can be written infraction form?
It is a ratio.
What are the Benefits of financial ratio analysis?
One of the main benefits of financial ratio analysis is that it simplifies financial statements. Another advantage is that vital information is easily highlighted.
Does tire size affect gear ratio?
It does affect overall ratio. The transmission ratios, the axle ratio, and tire size all figure into overall ratio.
