Question: true or false for company b the receivables turnover ratio...
TRUE OR FALSE
- For company b, the receivables turnover ratio decreased in 2017 with respect to 2016. Therefore, its average collection period increased in that period.
- Net interest margin is defined as interest income minus cost of funding.
- The Price-to-earnings ratio (PE ratio) is useful as an indicator of debt, because it relates the earnings of a company to its stock price
- Because a firm that uses debt can be as profitable as a firm that does not, some financial ratios are calculated with NOPAT (Net Operating Profit After Tax) rather than with net income.