Financial ratio analysis E5E6

Ratios for which the components for computation are drawn from the Balance Sheet are

• Financial ratios
• Balance sheet ratios
• Both A & B
• None of the above

Ratios for which the components for computation are drawn from the Profit & Loss Account

• Income Statement Ratios
• Operating Ratios
• Profit and Loss Account Ratios
• All of the above

Liquidity ratios include

• Current Ratio
• Acid Test Ratio or Quick Ratio
• Absolute Cash Ratio
• All of the above

Turn over Ratios include

• Capital Turnover Ratio
• Fixed Asset Turnover Ratio
• Working Capital Turnover Ratio
• All of the above

Profitability ratio does not include

• Gross Profit Ratio
• Capital Gearing Ratio
• Operating Profit Ratio
• Net Profit Ratio

................calculated to measure the financial risk and the firm’s ability of using debt for the benefit of shareholders

• Current ratios
• Leverage ratios
• Liquidity ratios
• Turn over ratios

Debt Equity ratio means

• Total debt to Net worth
• Total liabilities to Assets
• EBIT to Interest
• Debt to Assets

............... ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets.

• solvency ratios
• Activity ratios
• leverage ratios
• None of the above

Dividend pay out ratio means

• EBIT to Interest
• Debt to Assets
• DPS/EPS
• None of the above

Total assets turn over ratio means

• Total assets/ Sales
• Sales/ Total assets
• Assets/Liabilities
• None of the above