Financial Ratios

 

 

Instructions

Hover over the missing word with your mouse to show the correct fill in the blank answer.


1. The ——- ratio measures how fast a company can sell its inventory.

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inventory turnover

2. Companies often use the ——- ratio to calculate how quickly receivables are collected

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receivables turnover

3. The ——- ratio measures a firm’s ability to pay off its current liabilities with current assets.

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working capital

4. The Acid Test or ——- measures the ability of a company to pay its current liabilities when they come due with only quick assets.

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quick ratio

5. The ——- calculates the market value of a stock relative to its earnings by comparing the market price per share by the earnings per share.

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Price Earnings Ratio

6. Investors often use ——- calculate the amount of net income earned per share of stock outstanding.

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Earnings per Share

7. The ——- uses profit margin, asset turnover, and financial leverage formulas.

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DuPont Analysis

8. The ——- calculates the percentage of company financing that comes from creditors and investors.

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debt to equity ratio

9. The ——- measures the amount of a firm’s assets that are financed by its shareholders.

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equity multiplier

10. The ——- ratio measures how fast a company pays off its creditors and vendors.

________________________
payables turnover





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