Various Ratios Are Computed to Assess Different Aspects of a Company's

Essay

Various ratios are computed to assess different aspects of a company's financial condition and (or)strength.
Required:
In the table below,indicate which aspect of financial condition each specified ratio is designed to assess: $\begin{array}{|l|l|l|l|l|l|}\hline & & &&& \text { Stock } \\\hline &\text { Ratio }& \text { Liquidity } & \text { Solvency } & \text { Profitability } & \text { Market } \\\hline \text { 1. } & \text { Accounts receivable tumover } \\\hline \text { 2. } & \text { Average days to collect receivables } \\\hline 3 . & \text { Book value per share } \\\hline \text { 4. } & \text { Current ratio } \\\hline \text { 5. } & \text { Debt to equity ratio } \\\hline 6 . & \text { Dividend yield } \\\hline 7 . & \text { Earnings per share } \\\hline \text { 8. } & \text { Inventory turnover } \\\hline \text { 9. } & \text { Net margin } \\\hline \text { 10. } & \text { Average days to sell inventory } \\\hline \text { 11. } & \text { Number of times interest is earned } \\\hline \text { 12. } & \text { Plant assets to long-term liabilities } \\\hline \text { 13. } & \text { Price-eamings ratio } \\\hline \text { 14. } & \text { Quick ratio } \\\hline \text { 15. } & \text { Return on equity } \\\hline \text { 16. } & \text { Return on investment } \\\hline \text { 17. } & \text { Debt to assets ratio } \\\hline \text { 18. } & \text { Asset turnover ratio } \\\hline \text { 19. } & \text { Working capital } \\\hline\end{array}$