The following is a list of terms and definitions associated with financial statement analysis tools:
1. Return on assets
2. Debt to equity ratio
3. Earnings per share
4. Times interest earned
5. Financial leverage
6. Receivables turnover ratio
7. Debt to assets ratio
8. Solvency
9. Liquidity
10. DuPont analysis
a. A company's ability to continue in business in the long term by satisfying long-term obligations
b. A technique that breaks return on equity into three components
c. A comparison of net income to average total assets during the period
d. Refers to a company's ability to meet its short term obligations
e. The practice of obtaining capital through debt rather than equity to increase returns for the stockholders
f. A comparison of total liabilities to total stockholders' equity
g. A measure of how often a company turns over its receivables balance during the year
h. A comparison of net income before interest and taxes to interest expense
i. Net income presented on a per share basis
j. A comparison of total liabilities to total assets
Required
Match each term with the appropriate definition.