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WorksheetsBB301 - Financial Ratios Quiz
Total questions: 7
Worksheet time: 6mins
From 2015 to 2016, the Current Ratio went from 1.32:1 to 1.19:1; and the Acid Test Ratio went from 0.9:1 to 0.86:1.
With this in mind, has the liquidity position of D&C plc improved over the past two years?
Both current ratio and acid test ratio have improved
Both the current ratio and acid test ratio have worsened
Current ratio has improved but acid test ratio has worsened
Current ratio has worsened but acid test ratio has improved
From 2015 to 2016, the Gross Profit Margin went from 32.86% to 50.19%; ROCE from 31.8% to 53.0%; and Net Profit Margin from 14.71% to 27.14%.
Using these ratios, we see that the profitability of D&C plc over the past two years ...
Has steadily worsened
Has stayed the same
Has seen a strong increase
I have no idea what these figures mean...
From 2015 to 2016, the Inventory Turnover went from 7.58 time to 6.97 times; Payable Days from 102 to 100; and Receivables Days from 59 to 56.
Using these ratios to evaluate the financial efficiency of D&C plc over the past two years, we see that ...
... all ratios getting stronger
.. inventory turnover and receivables strengthening, but payables days worsening
... inventory turnover and receivables worsening, but payables days strengthening
... all ratios getting weaker
A firm has capital employed of £45m; current assets of £17m; current liabilities of £2.9m and non-current liabilities of £10.9m.
What is its current ratio value?
14.1 million
5.86:1
37.78%
1.23:1
Which financial ratio considers the long-term liabilities of a firm?
Gearing
Return on Capital Employed
Net Profit Margin
Receivables days
Which two financial ratios are measurements of financial efficiency?
Gearing and Payables days
Net profit margin and Current Ratio
Payables Days and Receivables Days
Gearing and Inventory Turnover
A&B Assets Ltd has the following financial information:
Receivables £10 million
Net Assets £120 million
Inventory £16 million
Gross Profit £64 million
Current Assets £32 million
Sales Revenue £56.5 million
Calculate the receivables days value for this company.
5.65 days
57 days
64.6 days
31.25 days
