Defining Ratios. There are no universally accepted definitions of financial ratios, but some of the following ratios make no sense at all. Substitute the correct definitions.

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c. Profit margin d. Inventory turnover a. Debt-equity ratio b. Return on equity = long-term debt long-term debt + equity EBIT-tax average equity net income interest sales total assets average inventory current liabilities e. Current ratio current assets current assets-inventories f. Interval measure = sales g. Average collection period = h. Quick ratio: cash+marketable securities + receivables average daily expenditure from operations average receivables/365 current liabilities