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Who uses financial ratios to assess a firm's financial health?
Who uses financial ratios to assess a firm's financial health?
- Customers of the firm
- Competitors of the firm
- Managers within a firm (correct)
- Suppliers to the firm
What is the purpose of using financial ratios?
What is the purpose of using financial ratios?
- To determine the number of current shareholders
- To calculate the market price of shares
- To evaluate the overall financial condition of a corporation (correct)
- To compare the earnings yield with bond yields
Why are some ratios usually quoted as percentages?
Why are some ratios usually quoted as percentages?
- Because they are used by potential shareholders
- Because it makes them easier to compare with bond yields
- Because they are usually less than 1 (correct)
- Because they are always greater than 1
What can be determined by taking the reciprocal of a ratio?
What can be determined by taking the reciprocal of a ratio?
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How do financial analysts use financial ratios?
How do financial analysts use financial ratios?
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What do financial ratios state?
What do financial ratios state?
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Who may use financial ratios to evaluate a firm's financial condition?
Who may use financial ratios to evaluate a firm's financial condition?
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In what form are some ratios usually quoted?
In what form are some ratios usually quoted?
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What does taking the reciprocal of a ratio do?
What does taking the reciprocal of a ratio do?
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When can the reciprocal of a ratio be below 1?
When can the reciprocal of a ratio be below 1?
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