The correct answer is option 3- 1) d,2) c, 3) b, 4) a
* Current assets Current Ratio = Current Assets / Current Liabilities The Current Ratio measures a company's ability to meet its short-term obligations using its current assets. It assesses short-term liquidity and the company's ability to cover current liabilities.
* Quick assets Quick Ratio = Quick Assets /Current Liabilities The Quick Ratio measures a company's ability to meet its short-term liabilities using its most liquid assets, excluding inventory. It provides a more stringent measure of liquidity compared to the Current Ratio.
* Shareholder's funds Debt-Equity Ratio = Long-term Debts / Shareholders’ Funds The Debt-Equity Ratio measures the proportion of a company's financing that comes from long-term debt relative to shareholders' equity. It is an indication of the company's financial leverage or how much it relies on debt financing versus equity financing.
* Cost of Revenue from operations Inventory Turnover Ratio = Cost of Revenue from Operations / Average Inventory The Inventory Turnover Ratio measures how efficiently a company manages its inventory. It indicates how many times a company's inventory is sold and replaced during a specific period. |