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1.1.5 finance question
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- Which of the following ratios is used to measure a firms profitability? a. Liabilities Ă· Equity c. Sales Ă· Assets b. Assets Ă· Equity d. Net Income Ă· Net SalesExpA ratio that measures a company’s profitability is thea. leverage ratio.b. gross margin percentage.c. current ratio.d. times-interest-earned ratio.
- Which type of financial ratio tells you how well a company can cover its long-term liabilities? a) efficiency b) liquidity Oc) solvency O d) profitability e) profitability and efficiencyWhich of the following ratios best measures the profitability of a company? a) Return on equity b) Gross margin c) Current ratio d) Net operating asset turnoverWhich measures the liquidity ratio of firms? a. Earnings per share b. Net profit margin Oc. Return on Assets C. d. Average collection period
- Which of the following ratios helps in measuring the long term solvency of the company? Current ratio Debt equity ratio Net profit margin ratio Quick ratioWhich of the following best describes the current ratio? a) Liquidity ratio b) Debt ratio c) Operating performance ratio d) Efficiency ratioSubject: FINANCIAL MANAGEMENT Essay: 1. What is the effect of the Current Ratio to the company’s operation?
- Profitability ratios include the profit margin on sales, the return on total assets, and the return on common equity. Select one: True FalsQuestion: Which financial ratio measures the proportion of net income generated per dollar of revenue? A) Return on Investment ( ROI) B) Operating Profit Margin C) Return on Sales (ROS) D) Earnings per Share (EPS)Which of the following is one measure of liquidity? a. Quick ratio b. Profit margin c. Times ineterst earned d. Debt-to-equity rati