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W2_Ratio Analysis

Authored by Tri Nguyen

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University

Used 5+ times

W2_Ratio Analysis
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11 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following best describes the purpose of financial ratio analysis?

To calculate the total assets of a company

To evaluate a company's financial performance and position using quantitative measures

To determine the number of employees in a company

To set the price of a company's products

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the Gross Profit Margin ratio measure?

The proportion of net profit to total assets

The percentage of revenue remaining after deducting cost of goods sold

The ability to pay short-term liabilities

The value of inventory held

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which formula correctly represents the Current Ratio?

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a profitability ratio?

Current Ratio

Debt-to-Equity Ratio

Gross Profit Margin

Inventory Turnover

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The Price-to-Earnings (P/E) Ratio is calculated as:

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is considered a leverage ratio?

Current Ratio

Debt-to-Equity Ratio

Inventory Turnover

Gross Profit Margin

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Liquidity ratios are primarily used to assess:

A company's profitability

A company's ability to meet short-term obligations

The value of a company's shares

The efficiency of asset utilisation

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