Financial Management Principles Quiz

What is a fundamental ratio of financial analysis that helps assess the capacity of repayment of a company?

Which ratio defines the liquidity of the balance sheet by ensuring that assets within one year exceed liabilities within one year?

For long term lenders, why is Free Cash Flow considered an essential element?

What should the Current ratio ideally be to indicate good liquidity on the balance sheet?

What does the Ratio of reduced liquidity consider in its calculation?

What indicates that a company is solvent according to the text?

What type of income is considered 'current income' in the text?

What is the main characteristic of exceptional results mentioned in the text?

Which financial elements are considered part of the 'current' according to the text?

What does the 'Ratio of variation of Turnover' allow to analyze according to the text?

What does the 'Ratio of variation of Added Value' compare according to the text?

What type of operations are included in the 'Autonomous balance' as defined in the text?

What is calculated by subtracting the Cost of Purchased sold goods from Sales of goods?

Which financial metric represents Earning Before Interest, Taxes, Depreciation, and Amortization?

What is calculated as Sold production + Stored production + Fixed production?

Which metric is calculated by deducting Taxes and Staff expenses from Added Value?

What is determined by adding Financial revenues to Earning Before Interest and Taxes (EBIT)?

In which types of companies is the Gross Margin specifically calculated?

What is the formula for calculating the Working Capital Need (WCN)?

What does a negative Working Capital Need indicate?

What are some factors that influence the evolution of Working Capital Need?

How is Net Cash related to Working Capital and Working Capital Need?

What does the analysis of big financial equilibrium involve?

What does Negative working capital do in terms of resources?

What does the concept of profitability refer to?

How is margin different from profitability?

What does ROCE represent in terms of profitability?

Which financial indicator serves as a performance measure for shareholders?

What is included in economic assets according to the text?

How is economic profitability different from financial profitability?

What does the Added Value (VA) measure in a company?

In financial analysis, what does EBITDA represent?

What does the Earning Before Interest Taxes Depreciation and Amortization (EBITDA) intend to pay?

How is the Gross Domestic Product (GDP) of a country determined?

What does the EARNING BEFORE INTEREST TAXES DEPRECIATION and AMORTIZATION (EBITDA) represent?

Which financial metric calculates the surplus of wealth created by a company?

What does a negative Working Capital Need indicate?

Which of the following factors influences the evolution of Working Capital Need?

How is Net Cash related to Working Capital Need?

What does the analysis of big financial equilibrium involve?

How is economic profitability different from financial profitability?

What is the formula for calculating the Working Capital Need (WCN)?

What does the Equity ratio represent in financial analysis?

When is a company considered 'under capitalized' based on the capitalization ratio?

What does the Working Capital (WC) measure in a company?

Why is it essential for current assets to have stable financing?

In a functional balance sheet, how are resources and uses typically estimated?

What characterizes a company that is 'under capitalized' according to the text?

What does the ratio 'Cover of stable uses' aim to measure?

How is the increase of fixed assets typically financed according to the text?

What does a positive Working Capital indicate about a company according to the text?

In the context of financial deleveraging, what does 'repayment by anticipation' refer to?

What does a decrease in stable resources usually imply for a company's working capital?

How is the 'Ratio of reduced liquidity' calculated based on the information provided?

What is the formula for calculating Return on Capital Employed (ROCE) according to the text?

What is the impact of increasing the part of debts in invested capital on the relationship between ROCE and ROE?

What does the leverage effect refer to in financial analysis?

In financial terms, when does ROE equal ROCE with a 'sledgehammer blow' effect?

What causes a decrease in financial profitability according to the text?

What is the leverage effect in financial analysis primarily attributed to?