FINANCIAL RATIO ANALYSIS

There are three categories under solvency analysis which are

• Profitability ratio, market indicator ratio and solvency ratio

• Profitability ratio, market indicator ratio and efficiency ratio

• Efficiency ratio, market indicator ratio and liquidity ratio

• Efficiency ratio, liquidity ratio and solvency ratio

Which of the following is NOT considered a profitability measure?

• Average sales period

• Asset turnover ratio

• Return on investment

• Return on Assets

The quick ratio is also known as

Which best describes the gross margin ratio?

• Profitability ratio

• Leverage ratio

• Coverage ratio

• Liquidity ratio

What ratio can be used to inefficient buying habits?

Inventory turnover ratio evaluates:

• A company’s ability to move inventory

• A company’s inventory purchasing efficiency

• A company’s ability to fully utilise the assets to generate income/sales.

• A company’s measures how many days, on average, it takes to sell the inventory.