Master Financial Ratios

Liquidity Ratios = Ability of a company to pay off both its current liabilities as they become due as well as long-term liabilities as they become current Solvency Ratios/ Leverage Ratios = Most powerful tool of financial statement analysis Profitability Ratios = A statistical yardstick by means of which relationship between two or various figures can be compared or measured Current Assets = Cash, cash equivalents, inventory, accounts receivable, marketable securities, prepaid expenses and other liquid assets

Current Liabilities = Notes payable, accounts payable, short-term loans, accrued expenses, unearned revenue, other short-term debts, credit Financial Ratios = A statistical yardstick by means of which relationship between two or various figures can be compared or measured Current Assets = Cash, cash equivalents, inventory, accounts receivable, marketable securities, prepaid expenses and other liquid assets Ratio = Most powerful tool of financial statement analysis

Liquidity Ratios = Ability of a company to pay off both its current liabilities as they become due as well as long-term liabilities as they become current Solvency Ratios/ Leverage Ratios = Most powerful tool of financial statement analysis Profitability Ratios = A statistical yardstick by means of which relationship between two or various figures can be compared or measured Current Assets = Cash, cash equivalents, inventory, accounts receivable, marketable securities, prepaid expenses and other liquid assets

<p>Current Liabilities = Notes payable, accounts payable, short-term loans, accrued expenses, unearned revenue, other short-term debts, credit Financial Ratios = A statistical yardstick by means of which relationship between two or various figures can be compared or measured Current Assets = Cash, cash equivalents, inventory, accounts receivable, marketable securities, prepaid expenses and other liquid assets Ratio = Most powerful tool of financial statement analysis</p> Signup and view all the answers

<p>Liquidity Ratios = Ability of a company to pay off both its current liabilities as they become due as well as long-term liabilities as they become current Solvency Ratios/ Leverage Ratios = Most powerful tool of financial statement analysis Profitability Ratios = A statistical yardstick by means of which relationship between two or various figures can be compared or measured Current Assets = Cash, cash equivalents, inventory, accounts receivable, marketable securities, prepaid expenses and other liquid assets</p> Signup and view all the answers