Interest coverage ratio is EBIT divided by interest expenses. Gross profit margin is the quantity sales minus cost of goods sold divided by sales. Return on assets is net income divided by total assets. The dividend yield is dividend per share divided by the market price per share. The payout ratio is dividend as a percentage of earnings per share.
Prior research finds that averages differ between industries.
Higher rated debt tends to have lower debt ratios, higher earnings to interest payments, and a higher return on assets. Explain why the notes to a firm's financial statements are an integral part of the financial statements. The notes to a firm's financial statements form an integral part of the financial statements because they disclose the significant accounting policies used to prepare the financial statements and provide additional detail concerning some of the items in the financial statements. Define the term cash flow. Explain the difference between cash flow and earnings.