Financial Ratios Quiz

A company has the following information: Net Income: $400,000 Revenue: $5,000,000 Total Assets: $2,000,000 Equity: $1,000,000 Total Liabilities: $1,000,000 What is the company's Return on Equity (ROE) using the DuPont formula?

• 10%

• 15%

• 20%

• 25%

A company has the following financial data: Total Liabilities: $3,000,000 Total Equity: $1,500,000 What is the company's Debt-to-Equity ratio?

• 1.5

• 2.0

• 3.0

• 0.5

A company has earnings before interest and taxes (EBIT) of $1,200,000, and its interest expense is $200,000. What is its Interest Coverage Ratio?

• 5

• 6

• 7

• 8

A company has the following: Current Assets: $1,000,000 Inventory: $400,000 Current Liabilities: $600,000 What is the company's Quick Ratio?

• 1.5

• 1.0

• 0.8

• 2.0

A company has the following data: Operating Income: $500,000 Revenue: $5,000,000 What is the company's Operating Profit Margin?

• 10%

• 12%

• 20%

• 25%

A company has the following: Net Income: $600,000 Total Assets: $10,000,000 What is the company's Return on Assets (ROA)?

• 6%

• 7%

• 8%

• 5%

A company has the following: Operating Cash Flow: $800,000 Capital Expenditures: $300,000 What is the company's Free Cash Flow?

• $500,000

• $600,000

• $700,000

• $800,000

The following information is provided: Net Income: $250,000 Depreciation: $30,000 Increase in Accounts Receivable: $10,000 Decrease in Accounts Payable: $15,000 What is the Cash Flow from Operations?

• $255,000

• $270,000

• $280,000

• $300,000

A company has the following: Issued New Debt: $500,000 Paid Dividends: $100,000 What is the Cash Flow from Financing Activities?

• $500,000

• $600,000

• $400,000

• $300,000

A company made the following transactions: Purchase of Equipment: $200,000 Sale of Investment: $50,000 What is the Cash Flow from Investing Activities?

• -$150,000

• -$250,000

• $150,000

• $250,000