Chapter 5 Crossword

a type of analysis that helps identify financial trends over time for a single company or business unit
a type of analysis that helps identify similarities and differences across companies or business units
a type of comparison that measures a company’s performance or health against some predetermined standard
the acquisitions price premium paid for a target company over and above the fair value of its identifiable assets
Return on Assets
a strategy that focuses customer attention on “unique” product or service attributes to gain brand loyalty and attractive profit margins
Return on Common Equity
refers to the risk of nonpayment by the borrower, and the resulting loss to the lender of interest and loan principal
current assets divided by current liabilities
a more short-run reflection of liquidity
tell us how efficiently the company is using its assets
intended to help lenders assess a borrower’s default risk or the likelihood of loan default
income statements that recast each statement item as a percentage of sales
companies that consistently earn rates of return above the floor
refers to the company’s short-term ability to generate cash for working capital needs and immediate debt repayment needs
refers to the long-term ability to generate cash internally or from external sources to satisfy plant capacity needs, fuel growth, and repay debt when due
an activity ratio that helps analysts determine whether receivables are excessive when compared to existing levels of credit sales
an activity ratio that tells analysts how effectively inventories are managed
a company’s status when it fails to make a required loan payment on time
arise when what is good for one party isn’t necessarily good for another party
a ratio that helps the analyst spot efficiency gains from improved accounts receivable and inventory management
a ratio that captures information about property, plant, and equipment utilization
a ratio that helps analysts understand the company’s pattern of payment suppliers
provide information about the amount of long-term debt in a company’s financial structure
a financial ratio that indicates how many times interest expense is covered by operating profits before taxes and interest are factored in