Given the Following Information for Victory Stables Calculate Their Return

question 97

Essay

Given the following information for Victory Stables calculate their return on assets,return on equity and comment on the use of these ratios.

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Definitions:

Accounts Receivable

Outstanding dues from customers for goods or services a company has already delivered.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Cash Ratio

A liquidity metric that measures a company's ability to pay off its short-term liabilities with its cash and cash equivalents.

PE Ratio

Price-to-Earnings Ratio is a measure that compares a company's current share price to its per-share earnings.