Define each of the following terms a Liquidity ratios current ratio quick, or acid test, ratio b Asset management ratios inventory turnover ratio days sales outstanding (DSO) fixed assets turnover ratio total assets turnover ratio c Financial leverage ratios debt ratio times interest earned (TIE) r...

a A liquidity ratio is a ratio that shows the relationship of a firms cash and other current assets to its current liabilities The current ratio is found by dividing current assets by current liabilit ...

Define each of the following terms: a. Liquidity ratios: current ratio; quick, or acid test, ratio b.

Question:

Define each of the following terms:
a. Liquidity ratios: current ratio; quick, or acid test, ratio
b. Asset management ratios: ; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio
c. Financial leverage ratios: debt ratio; times-interest-earned (TIE) ratio; coverage ratio
d. Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; return on total assets (ROA); return on common equity (ROE)
e. Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/book (M/B) ratio; book value per share
f. Trend analysis; comparative ratio analysis; benchmarking
g. Du Pont equation; window dressing; seasonal effects on ratios

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...