Financial Ratios Quiz

Which of the following is a liquidity ratio?

• Return on Equity (ROE)

• Debt-to-Equity Ratio

• Current Ratio

• Net Profit Margin

The current ratio measures a company's ability to:

• Pay off its short-term liabilities with its short-term assets

• Generate profit from its assets

• Manage long-term debt obligations

• Increase sales through marketing

What is the formula for the current ratio?

• Current Liabilities / Current Assets

• Net Income / Total Equity

• Current Assets / Current Liabilities

• Total Debt / Total Assets

Which ratio is also known as the acid-test ratio?

• Current Ratio

• Quick Ratio

• Debt Ratio

• Return on Assets (ROA)

If a company's quick assets are RM615, and its current liabilities are RM875, what is the quick ratio?

• 0.7

• 1.0

• 1.5

• 2.0

Profitability ratios measure:

• A firm's ability to meet short-term obligations

• The efficiency of a firm in using its assets to generate profits

• The proportion of debt in a company's capital structure

• The time taken to collect receivables

What is the formula for Return on Assets (ROA)?

• Net Income / Total Equity

• Total Assets / Net Income

• Net Income / Total Assets

• Sales / Total Assets

A company has a net income of RM450 and total assets of RM4065. What is its ROA?

• 11.07%

• 23.19%

• 12.50%

• 9.85%

The debt ratio indicates:

• The proportion of a company's assets that are financed by debt

• The company's ability to pay off short-term liabilities

• The profitability of a company

• The efficiency in asset utilisation

If a company has a total debt of RM1625 and a total assets of RM4065, what is its debt ratio?

• 25.5%

• 40.0%

• 39.98%

• 50.2%