Examlex
Which of the following describes how well a system can scale up, or adapt to the increased demands or growth?
Basic Earning Power Ratio
A financial ratio that shows how effectively assets are being used to generate earnings before the influence of taxes and financing costs.
Times-Interest-Earned Ratio
A measure of a company's ability to honor its debt payments, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.
Equity Multiplier
A ratio of financial leverage that calculates the proportion of a company's assets funded by its shareholders' equity.
Total Assets Turnover Ratio
Measures the turnover of all the firm’s assets; it is calculated by dividing sales by total assets.
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