Financial Ratios

Which of the following is not a current asset account?

Inventory

Prepaid Insurance

Property Plant & Equipment

Current assets MINUS current liabilities is

Current ratio

Working capital

Net worth

Current assets DIVIDED by current liabilities is

Current Ratio

Working capital

Net worth

Joe's Emporium has a ROE of 5.13%. This indicates that 5.13% of ___________ is converted to _____________?

Shareholders Equity; Net Profit

Shareholders Equity; Non-Current Assets

Shareholders Equity; Current Assets

Joe's Emporium's ROA moved from 4.27% in 2019 to 6.38% in 2020. This indicates that Joe's ability to produce profits from its assets has ____________.

improved

stayed the same

decreased

The net profit margin in 2018 was 4.69%. This indicates that:

for every dollar of sales the company is generating 4.69c of net profit before interest and tax

for every dollar of net profit the company is generating 4.69c of sales

for every dollar of sales the company is generating 4.69c of net profit after interest and tax

Joe's Emporium's days in inventory moved from 112 in 2019 to 97 in 2020. This indicates that Joe's ability to sell his inventory has ______________.

improved

stayed the same

decreased

Which ratio below does not measure liquidity?

Current ratio

Net profit margin

Quick ratio

A debt ratio that moves from 0.53 to 0.43 year on year implies that a company is ______ reliant on debt to to finance its operations.

less

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