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Questions and Answers
Which one of the following is a liquidity ratio?
Which one of the following is a liquidity ratio?
- Debt to equity ratio
- Earnings per share ratio
- Current ratio (correct)
- Return on investment ratio
Which financial ratio indicates the efficiency of a company's inventory management?
Which financial ratio indicates the efficiency of a company's inventory management?
- Price-earnings ratio
- Profit margin ratio
- Inventory turnover ratio (correct)
- Debt ratio
Which ratio is used to assess a company's ability to meet its long-term debt obligations?
Which ratio is used to assess a company's ability to meet its long-term debt obligations?
- Return on assets ratio
- Gross profit margin ratio
- Times interest earned ratio (correct)
- Debt to equity ratio
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