Financial Ratios

A comparison between two numbers showing how many times one number exceeds the other.

• return on investment
• profitability ratios
• ratio
• efficiency ratios

Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.

• liquidity ratios
• efficiency ratios
• leverage ratios
• profitability ratios

Financial ratios that indicate how effectively a company uses its resources to generate sales.

• liquidity ratios
• leverage ratios
• profitability ratios
• efficiency ratios

Financial ratios that show how and to what degree a company has financed its assets.

• leverage ratios
• liquidity ratios
• efficiency ratios
• profitability ratios

Financial ratios that tell how much of each dollar of sales, assets, and owner's investments resulted in net profit.

• liquidity ratios
• efficiency ratios
• profitability ratios
• leverage ratios

The difference between current assets and current liabilities at a point in time. The amount of money that would be left over if all the current liabilities were paid off by current assets. 

• current ratio
• working capital
• acid test/ quick ratio
• asset turnover ratio

The comparison of a firm's current assets to current liabilities. The ratio indicates the amount of current assets available to pay off $1 of current debt.

• acid test/ quick ratio
• asset turnover ratio
• current ratio
• inventory turnover

Indicates a firm's ability to quickly liquidate assets to pay off current debts.

• asset turnover ratio
• inventory turnover
• debt-to-assets ratio
• acid test/ quick ratio

Indicates the number of dollars in sales the firm generates from each dollar it has invested in assets. 

• asset turnover ratio
• acid test/ quick ratio
• debt-to-assets ratio
• debt-to-equity ratio

The number of times during an operating period that the average inventory was sold.

• working capital
• return on investment
• inventory turnover
• debt-to-assets ratio