Financial Ratios Quiz
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Questions and Answers

What ratio is used to measure the profitability of a company, which shows how much profit a company makes with the money shareholders have invested?

  • Current Ratio
  • Return on Equity (ROE) (correct)
  • Quick Ratio
  • Debt Ratio
  • Which financial ratio indicates the percentage of a company's assets that are provided via debt?

  • Debt Ratio (correct)
  • Inventory Turnover Ratio
  • Price/Earnings (P/E) Ratio
  • Earnings Per Share (EPS)
  • Which one of these financial ratios measures the ability of a company to pay off its short-term liabilities with its short-term assets?

  • Current Ratio (correct)
  • Price/Earnings (P/E) Ratio
  • Return on Equity (ROE)
  • Earnings Per Share (EPS)
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