What is the company debt ratio


Question 1: Green Sisters has a DSO of 20 days. The company's average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.

Question 2: Vigo Vacations has an equity multiplier of 2.5. The company's assets are financed with some combination of long- term debt and common equity. What is the company's debt ratio?

Question 3: Winston Washer's stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston's market/book ratio?

Question 4: A company as an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio?

Question 5: Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is it ROE?

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Finance Basics: What is the company debt ratio
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