If an Analyst's Goal Is to Determine How Effectively a Firm

question 68

Multiple Choice

If an analyst's goal is to determine how effectively a firm is managing its assets, which of the following sets of ratios would s/he examine?

• A) profit margin, current ratio, fixed charge coverage ratio
• B) quick ratio, debt ratio, time interest earned
• C) inventory turnover ratio, days sales outstanding, fixed asset turnover ratio
• D) total assets turnover ratio, price earnings ratio, return on total assets
• E) time interest earned, profit margin, fixed asset turnover ratio

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Definitions:

Group-Oriented Contingencies

Behavioral interventions that apply consequences to a group or class as a whole based on the behavior of one member, several members, or the entire group.

Dynamic

Characterized by constant change, activity, or progress, particularly in the context of dynamic systems or models.

Logistics System

A network of coordinated processes and activities involved in the planning, implementing, and controlling the efficient flow of goods and services.

Cost Center

A department or unit within an organization that does not directly generate revenue but incurs costs, thereby contributing to the company’s profitability indirectly through its support services.