OMSA MGT 8803 Exam 1 Ratios Questions With Correct Answers.

OMSA MGT 8803 Exam 1 Ratios Questions With
Correct Answers


Return on Assets - CORRECT ANSWER✔✔-net income/average total assets
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Profit Margin - CORRECT ANSWER✔✔-net income/sales revenue
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Asset Turnover - CORRECT ANSWER✔✔-sales revenue/average total assets
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Dupont Analysis - CORRECT ANSWER✔✔-ROA = Profit Margin * Assets Turnover
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Return on Equity - CORRECT ANSWER✔✔-net income/average shareholders'
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equity


ROE Analysis - CORRECT ANSWER✔✔-ROE = Profit Margin * Assets Turnover *
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Equity Multiplier
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Equity Multiplier - CORRECT ANSWER✔✔-(liabilities + owners' equity)/owners'
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equity


Working Capital - CORRECT ANSWER✔✔-current assets - current liabilities
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Current Ratio - CORRECT ANSWER✔✔-current assets/current liabilities
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