Financial Ratio Analysis (identification)

It is a mathematical relationship between two numbers and commonly expressed in percentages and decimals.

The number of times that the inventory is sold during the accounting period.

It is also known as working capital ratio, and is one way to assess the overall liquidity of a company by comparing current assets to current liabilities.

Also known as acid test ratio, it is more conservative in the sense that it does not include all current assets in the computation.

It is the number of times that receivables on credit sales are collected.

It measures the percentage of assets funded by creditors.

It is also known as stability ratio. It indicates whether a company's cash flow is sufficient to meet its short- and long-term liabilities.

It is computed by deducting operating expenses from the gross profit.

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

A ratio that determines the company's capability to cover short-term obligations and cash flows.