Examlex
Financial ratios are used to assess a company's statements because they
Return on Total Assets
A financial ratio that measures a company's profitability relative to its total assets.
Income Tax Expense
The amount of money that a company is required to pay to the government based on its taxable income.
Interest Expense
The cost incurred by an entity for borrowed funds over a period of time.
Return on Stockholders' Equity
A measure of a company's profitability, calculated as net income divided by average stockholders' equity.
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Q113: A company's ability to pay the interest