The following ratios are often used in financial statement analysis: _________ Return on equity _________ Debt to
Question:
_________ Return on equity
_________ Debt to assets ratio
_________ Times interest earned
_________ Quick ratio
_________ Inventory turnover ratio
_________ Price to earnings ratio
_________ Profit margin
_________ Current ratio
_________ Debt to equity ratio
Required
Identify each ratio as a profitability, liquidity, or solvency ratio.
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
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