Question

Match each of the following ratios with the appropriate ratio class (liquidity ratio, profitability ratio or...

Match each of the following ratios with the appropriate ratio class (liquidity ratio, profitability ratio or solvency ratio)

Question 28 options:

123

Current ratio

123

Earnings per share

123

Quick ratio

123

Working capital

123

Asset turnover

123

Solvency ratio
1.

Liquidity ratio
2.

Profitability ratio
3.

Solvency ratio
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Homework Answers

Answer #1

Liquidity ratios - Liquidity ratios measure the firm's ability to pay its debt obligation without further capital assistance

Profitability ratios - Profitability ratios measure the firm's ability to generate Income against its expenses

Solvency ratios - They measure firm's ability to pay long term debt obligations

Current Ratio - Liquidity ratio

Earnings per share - Profitability ratio

Quick Ratio - Liquidity ratio

Working capital - Liquidity ratio

Asset turnover - profitability ratio

Solvency ratio - Solvency ratio

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