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4 cards from this section. Quick, good the night before a test.
What is the formula for the Current Ratio?
Consider what the Current Ratio is measuring.
Name any two profitability ratios.
Think of ratios that deal with profit generation.
What is the ideal Current Ratio?
Recall the standard benchmark for liquidity.
The Debt-Equity Ratio is a measure of a company's financial leverage.
Think about what financial leverage means.
A company reports Current Assets of ₹1,50,000, Current Liabilities of ₹75,000, and Inventory worth ₹30,000. Calculate the Current and Quick Ratios and discuss their implications.
Remember to exclude inventory for the Quick Ratio.
Using the figures provided: Net Profit before Interest and Tax: ₹90,000; Capital Employed: ₹6,00,000. Calculate the Return on Capital Employed and evaluate its significance.
What is an acceptable ROI in your industry?
5 more questions in this section. Enroll free to practise them all.
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