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There Are at Least Two Ratios That Are Used to Analyze

question 49

Essay

There are at least two ratios that are used to analyze the company's stock as an investment.Identify two and state how each ratio is calculated.


Definitions:

Service Departments

Units within an organization that provide support to the profit-making departments, rather than directly contributing to profits.

Profit Margin

represents the percentage of revenue that remains as profit after all operating expenses, taxes, and costs have been deducted from total sales.

Investment Turnover

A ratio that measures how effectively a company generates sales or revenue from its investment in assets.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment relative to its cost.

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