Question
Match the following financial analysis terms to their definitions. a. Solvency ratios b. Vertical analysis c. Current ratio d. Profit margin ratio e. Profitability ratios
Match the following financial analysis terms to their definitions.
a. Solvency ratios
b. Vertical analysis
c. Current ratio
d. Profit margin ratio
e. Profitability ratios
f. Horizontal analysis
g. Liquidity ratios
h. Quick ratio
i. Debt-to-equity ratio
j. Return on assets ratio
1. A ratio that only includes the most liquid assets and indicates that a company has the ability to spend cash quickly and is positioned to meet its short-term obligations
2. A ratio that expresses the balance between liabilities and equity
3. A ratio that illustrates a companys ability to use assets to generate net income
4. An analysis where account balances are compared across time to determine both the dollar and percentage difference between them
5. Ratios that gauge a companys ability to meet long-term obligations
6. Ratios that provide insight into a companys ability to effectively generate income
7. Ratios that indicate how quickly a company can convert assets to cash
8. A ratio that indicates the percentage of revenue that a company converts to net income
9. An analysis that compares account balances within the same period
10. A ratio that indicates how well positioned a company is to pay off that which it owes in the next twelve months
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