Financial Ratios and Analysis Worksheet

Ria, Asher, and Dhruv are working on a business project. They want to use Ratio Analysis to help them out. What is the main purpose of Ratio Analysis for their project?

• Tax computation

• Decision making

• Cost allocation

• Budgeting

Krish, Avyaan, and Shaan are preparing for their finance quiz! They come across this question: What is the main purpose of Ratio Analysis?

• Efficiency

• Profitability

• Liquidity and solvency

• All of these

Krish and Avani are having a friendly quiz battle! Can you help them out? Which of the following is a liquidity ratio?

• Debt-Equity Ratio

• Current Ratio

• Operating Ratio

• Return on Equity

Eshaan, Eesha, and Mira are preparing for their finance quiz. They come across a question: A Quick Ratio excludes which of the following?

• Debtors

• Cash

• Inventory

• Bills Receivable

Anika and Arnav are starting a new business and want to make sure it's financially healthy. Can you help them by choosing the ideal Current Ratio for their business?

• 1:1

• 1.5:1

• 2:1

• 3:1

Viaan and Aditi are discussing finance in class. Viaan asks, "Aditi, can you tell me what the Debt-Equity Ratio indicates?" What should Aditi answer?

• Operational efficiency

• Short-term solvency

• Long-term solvency

• Profitability

Divya is helping her friend Myra understand how companies manage their finances. She asks, "Which ratio measures a company’s ability to pay its short term obligations?" Can you help Myra answer Divya’s question?

• Liquidity Ratio

• Solvency Ratio

• Profitability Ratio

• Activity Ratio

Viaan and Avni are running a lemonade stand and want to know how well their business is doing! Can you help them figure out how to calculate the Gross Profit Ratio?

• (Gross Profit / Sales) * 100

• (Sales / Gross Profit) * 100

• (Net Profit / Sales) * 100

• None

Rohan and Aditi are running a store. They notice their Inventory Turnover Ratio is really high! What does this mean for their business?

• Slow-moving stock

• Fast sales

• Overstocking

• Poor liquidity

Kavya, Ananya, and Saisha are reviewing their business's financial health. Which of the following ratios should they look at to measure how profitable their business is?

• Current Ratio

• Return on Equity

• Debt Ratio

• Quick Ratio