Question

Which of the following are likely to be valuable figures for a financial analyst?

1) interest expense expressed as a percentage of the total of fixed charges
2) values of individual liabilities expressed as percentages of Total Liabilities
3) values of individual assets expressed as percentages of Total Assets
4) all of the above

Answer 1

The valuable figures for a financial analyst include interest expense as a percentage of fixed charges, values of liabilities as percentages of total liabilities, and values of assets as percentages of total assets.

Step-by-step explanation:

The valuable figures for a financial analyst would include:

1. Interest expense expressed as a percentage of the total of fixed charges: This figure helps the analyst understand the cost of borrowing for the company and its impact on the overall financial health.
2. Values of individual liabilities expressed as percentages of Total Liabilities: This figure provides insights into the distribution and proportion of different liabilities in relation to the total liabilities of the company.
3. Values of individual assets expressed as percentages of Total Assets: This figure helps assess the composition and significance of different assets in relation to the total assets of the company.

Therefore, the correct answer is 4) all of the above.