An Example of a Highly Cyclical Industry Is __________

question 89

Multiple Choice

An example of a highly cyclical industry is __________.

• A) the automobile industry
• B) the tobacco industry
• C) the food industry
• D) a and b
• E) b and c

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

EBIT

Earnings Before Interest and Taxes, a firm's earnings metric, accounts for all operational expenses aside from interest and taxes.

Return on Equity Ratio

The return on equity ratio measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue by comparing sales with total assets.