3 Questions
Which financial ratio measures a company's ability to pay off short-term debts using its current or liquid assets?
Liquidity ratio
What does a higher leverage ratio indicate about a company's financial position and risk level?
Higher risk of default or bankruptcy
What does the current ratio measure?
The firm's ability to meet its current obligations with the most liquid of its current assets
Test your knowledge of financial ratios and learn how they can help gauge a company's financial health. This quiz will cover various ratios, including liquidity ratios, and how they are calculated. Sharpen your financial analysis skills and gain a better understanding of how ratios can be used to make informed business decisions.
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