Financial discusion questions
Please answer at least three questions below.
What is profitability, and why is it so important for assessing a company? Give examples to illustrate your points.
What is net profit margin? What is its relationship with operating profit margin and gross profit margin? Illustrate your points with examples.
What is total asset turnover, and what is return on assets? What are relationships between these two ratios? Illustrate your points with numerical examples.
Why is DuPont return on assets important for profitability analysis? What are its advantages and disadvantages?
What is operating asset turnover? What is return on operating assets? What are their usages for analysis?
What are sales to fixed assets and return on investment? Give examples to illustrate their specific usefulness.
What are return on total equity and return on common equity? Do you think that the two ratios are interlinked? Give examples to illustrate your points.
What are segment reporting and interim reporting? Why are they important for financial analyses?