10 Questions
What does the Debt Coverage Ratio measure in financial management?
Debt repayment capability
Which financial ratio is used to evaluate a company's ability to pay off its short-term obligations?
Quick Ratio
What is the primary focus of the Debt-to-Equity Ratio?
Solvency
In working capital management, what does the Inventory Turnover Ratio indicate?
Sales efficiency
What does the Operating Cash Flow Ratio measure in financial analysis?
Operating efficiency
Which financial metric is used to assess the efficiency of a company in collecting receivables?
Days Sales Outstanding (DSO)
The formula for calculating the Cash Conversion Cycle involves which components?
(DSO + DIO) - DPO
What does the Quick Ratio primarily assess in a company's financial health?
Short-term liquidity
When calculating Working Capital, what does a negative value typically indicate?
'Inadequate' liquid assets to cover obligations
What does the Inventory Turnover Ratio reveal about a company's operations?
Efficiency in managing inventory levels
Test your knowledge of working capital management with this quiz. Questions cover topics like the Quick Ratio, inventory management, and Days Sales Outstanding (DSO). See how well you understand key concepts in financial management.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
