What is the income earned for each dollar of sales

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Reference no: EM131522387

Question: 1. Which profitability ratios best answer each of the following financial questions?

a. What is the income earned for each dollar invested in assets?

b. What is the income earned for each dollar of sales?

c. What is the amount of sales for each dollar invested in assets?

2. Determine whether each of the following changes in profitability ratios normally is good news or bad news about a company.

a. Increase in profit margin.

b. Decrease in asset turnover.

c. Decrease in return on equity.

d. Increase in the price-earnings ratio.

Reference no: EM131522387

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