Question
What does gross profit margin reveal about a company's economics?
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Answer
Pricing power after direct production costs.
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Question
What business reality is indicated when cash-based interest coverage falls sharply?
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Answer
Less operating cash is available to service interest.
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Question
How is cash-based interest coverage calculated in cash flow analysis?
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Answer
(extCFO+extInterestpaid+extTaxespaid)/extInterestpaid
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Question
Why can a higher debt-to-equity ratio worry analysts even if sales are growing?
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Answer
Growth is being financed with more creditor claims.
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