Explain the dso and the inventory turnover ratios

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Reference no: EM132641997

1. Why is Depreciation listed as a cost but given special treatment in the income statement?

2. If a company has positive net income it can do three things with this (pay out dividends, use it for retained earnings, or use it for stock buybacks). Explain each of these.

3. What is the dark side of stock buy backs? Use "End Stock Buybacks, Save the Economy" by W. Lazonick and K. Jacobsen, NYTimes, August 23, 2018.

4. What is the book value of a company? How is it calculated?

5. Why are Free Cash Flows so Important to a Company? Give and explain two reasons.

6. What is a quick and dirty method for calculating free cash flows?

7. Using yahoofinance.com show me the free cash flows for end of year 2019, end of the year 2018 for Amazon and Chesapeake Energy.

8. Explain the Current Ratio and Acid Test. What is the difference between the two?

9. Explain the DSO and the Inventory Turnover Ratios.

10. Explain the Profit Margin on Sales, ROE, and ROA ratios.

Reference no: EM132641997

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