Financial Ratios Quiz

What are financial ratios primarily used for?

• Cooking recipes

• Assessing company performance

• Designing clothes

• Writing novels

Tags

CCSS.6.RP.A.3B

Which financial statements are used to derive financial ratios?

• Income statement, balance sheet, cash flow statement

• Recipe book, novel, magazine

• Weather report, news article, blog post

• Movie script, play, poem

What do asset management ratios measure?

• The ability of a company to pay its bills

• The efficiency of a company in managing its assets

• The overall debt compared to book value

• The ability of a company to make a profit

Which ratio is a quick look at how cash and liquid assets compare to short-term debt?

• Profitability ratio

• Debt ratio

• Liquidity ratio

• Asset management ratio

Tags

CCSS.6.RP.A.3A

What is the formula for inventory turnover?

• Total revenue / Total assets

• Average inventory / Annual cost of goods sold

• Annual cost of goods sold / Average inventory

• Current assets / Current liabilities

Tags

CCSS.7.RP.A.3

Match the following financial ratios with their primary interest for investors who practice fundamental analysis.

• Level of financial leverage

• Profitability ratios

• Ability to meet short-term obligations

• Asset management ratios

• Ability to generate earnings

• Debt ratios

• Efficiency in using assets

• Liquidity ratios

Tags

CCSS.7.RP.A.2C

How much did Starbucks' sales increase in 2004 compared to 2003?

• 20%

• 25%

• 29.9%

• 35%

Tags

CCSS.6.RP.A.3C

What does EPS stand for in financial terms?

• Earnings Per Share

• Earnings Per Stock

• Earnings Per Sale

• Earnings Per Statement

How is EPS calculated?

• Net earnings divided by outstanding shares

• Net earnings multiplied by outstanding shares

• Net earnings plus outstanding shares

• Net earnings minus outstanding shares

What was the EPS for SBUX as of October 3, 2004?

• 0.98 per share

• 1.00 per share

• 0.75 per share

• 1.25 per share

Tags

CCSS.6.RP.A.3B