WorksheetsUnit 3.5 Profitability and liquidity ratio analysis APK
Total questions: 9
Worksheet time: 10mins
Which of the following is not a financial ratio?
Staff turnover ratio
Gross profit margin
Return on capital employed
What does ROCE stand for?
Real Operational Capital Employed
Rate of Capital Expenditure
Return on Capital Employed
Liquidity ratios are financial ratios that examine an organization’s ability to pay its liabilities and debts.
True
False
(a) analysis is a
quantitative management planning and decision-making tool, used to analyze and evaluate the financial performance of a business. These can be further categorized as profitability, liquidity and efficiency ratio analysis.
Suppose a firm has sales revenue equal to $100 million, the cost of sales or cost of goods sold (COGS) equal $55 million, and expenses (or overheads) equal $25 million. Calculate the net profit margin (NPM) if the formula is:
NPM: (Net profit before interest and tax/sales revenue)100
Draw an image of the term "liquidity"
Net profit margin (NPM) is a profitability ratio that measures a firm’s overall profit (after all costs of production have been deducted) as a percentage of its sales revenue. It is also an indicator of how well a business can manage its indirect costs (overhead expenses).
False
True
Will Mrs. Casco gives us a summative review at the end of the unit?
Yes
No
Maybe
Would you like to review Unit 3.4 one last time, conduct a brief general overview?
Yes
No
