Question
Please match the following terms with the following definitions by placing the correct letter next to the term. gross margin ratio profit margin ratio return
Please match the following terms with the following definitions by placing the correct letter next to the term.
gross margin ratio
profit margin ratio
return on assets ratio
current ratio
quick ratio
receivables turnover ratio
inventory turnover ratio
debt to assets ratio
debt to equity ratio
times interest earned ratio
A. gross margin generated for each dollar in net sales
B. profit generated for each dollar in net sales
C. evaluates how much net income was generated from each dollar in average assets invested
D. indicates whether a company has sufficient current assets to cover current liabilities
E. indicates whether a company has sufficient quick, or highly liquid, assets to cover current liabilities
F. indicates how many times receivables are collected in a given period
G. indicates how many times inventory is sold and restocked in a given period
H. indicates the percentage of assets funded by creditors
I. measures the balance of liabilities and shareholders equity used to fund assets
J. measures the companys ability to cover its interest expense related to long-term debt with current period earnings
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