Match the Following Financial Statement Ratios with Their Definition

Short Answer

Match the following financial statement ratios with their definition.
1.Working capital _____
2.Current ratio _______
3.Profit margin ______
4.Return on assets______
5.Debt to equity ratio________
6.Return on equity_______
7.Asset turnover_________
a.A measure of profitability that shows the proportion of a company's assets that is financed by creditors and the proportion financed by stockholders
b.A measure of liquidity that shows the net current assets on hand to continue business operations
c.A measure of profitability that relates the amount earned by a business to the stockholders' investment in the business
d.A measure of profitability that shows the percentage of each sales dollar that results in net income
e.A measure of liquidity; current assets divided by current liabilities
.A measure of profitability that shows how efficiently a company uses its assets to produce income
g.A measure of how efficiently assets are used to produce sales