Matching
For each of the ratios listed below, indicate by the appropriate letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.
Premises:
Price-earnings ratio
Return on assets
Accounts receivable turnover
Earnings per share
Payout ratio
Working capital
Current ratio
Debt to assets ratio
Free cash flow
Inventory turnover
Responses:
Liquidity ratio
Profitability ratio
Solvency ratio
Correct Answer:
Premises:
Responses:
Price-earnings ratio
Return on assets
Accounts receivable turnover
Earnings per share
Payout ratio
Working capital
Current ratio
Debt to assets ratio
Free cash flow
Inventory turnover
Premises:
Price-earnings ratio
Return on assets
Accounts receivable turnover
Earnings per share
Payout ratio
Working capital
Current ratio
Debt to assets ratio
Free cash flow
Inventory turnover
Responses:
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