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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?
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?
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?
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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