Match each definition that follows with the term it defines.

Current position analysis

Common-sized financial statements

Vertical analysis

Times interest earned

Solvency

Horizontal analysis

Profitability analysis

Leverage

Useful for comparing one company to another or to industry averages.

The percentage analysis of the relationship of each component in a financial statement to a total within the statement.

A percentage analysis of increases and decreases in related items on comparative financial statements.

Measures the risk that interest payments will not be made if earnings decrease.

An analysis of a company's ability to pay its current liabilities.

A company's ability to make interest payments and repay debt at maturity.

Focuses on a company's ability to generate net income.

Use debt to increase the return on an investment.