Financial Ratios

Financial Ratios Quiz

Test your knowledge of financial ratios and their implications in business! This quiz is designed to assess your understanding of key financial metrics that are crucial for evaluating a company's performance.

Gain insights into:

Current assets and liabilities
Return on Equity (ROE)
Return on Assets (ROA)
Profit margins
Debt reliance

9 Questions2 MinutesCreated by CalculatingStar245

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

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.

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Financial Ratios

Financial Ratios Quiz

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