Part 1. Identify Ratios Identify the ratio that corresponds with the following descriptions. Enter your answers in the shaded boxes.

Description

Ratio Measures a companys ability to make and collect sales A: Receivables Turnover

Provides information on how well a company manages its inventory A: Inventory Turnover

Measures the return to each share of stocked owned by an investor

Shows the ability of a company to generate profits from sales A: Profit Margin

Measures a companys ability to generate profits from equity

Measures a companys capital structure by showing the percentage of assets provided by creditors

Measures a companys capital structure and financial leverage using liabilities and equity A: Debt to Equity Ratio

Show the ability to pay current liabilities immediately by measuring the difference between quick assets and current liabilities A: Quick Ratio

Measures the ability to pay interest out of current earnings

Measures the ability to pay current obligations by comparing current assets to current liabilities

Provides an indication of investor perceptions of the company by comparing net income to stock price

Measures a companys ability to generate profits from its entire resource base