Practicing Success
Match the following.
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(A)-(II), (B)-(IV), (C)-(I), (D)-(III) (A)-(I), (B)-(II), (C)-(III), (D)-(IV) (A)-(II), (B)-(IV), (C)-(III), (D)-(I) (A)-(IV), (B)-(I), (C)-(III), (D)-(II) |
(A)-(II), (B)-(IV), (C)-(III), (D)-(I) |
* Current Ratio- Liquidity Ratios: These ratios gauge a company's ability to meet its short-term financial obligations promptly. Two common liquidity ratios are the current ratio and the acid-test ratio or quick ratio. * Inventory Turnover Ratio- Activity/Turnover Ratios: These ratios provide insights into a company's operational efficiency and its ability to generate sales or turnover. Key turnover ratios encompass Inventory Turnover, Trade Receivables Turnover, Trade Payables Turnover, Working Capital Turnover, Fixed Assets Turnover, and Current Assets Turnover. * Return on Investment- Profitability Ratios: Profitability ratios delve into a company's capacity to generate earnings based on the utilization of its resources. Prominent profitability ratios include the Gross Profit ratio, Operating ratio, Net Profit Ratio, Return on Investment (ROI) or Capital Employed, Earnings per Share (EPS), Book Value per Share, Dividend per Share, and Price/Earnings (P/E) ratio. |