Financial Ratios
21 important questions on Financial Ratios
What is a common-size statement?
What are financial ratios?
What is the average tax rate?
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What is the marginal tax rate?
What is a flat-rate tax?
What are the 4 types of financial ratios?
2. Efficiency ratios
3. Profitability ratios
4. Market prospect ratios
What are the 2 types of solvability ratios?
2. Solvency ratios
What are liquidity ratios?
What is the cash ratio?
What is the debt-to-equity ratio?
What is the TIE ratio/IC ratio?
What are the 5 solvency ratios?
2. Debt-to-equity ratio
3. Equity multiplier
4. TIE ratio/IC ratio
5. Cash coverage ratio
What is days' in inventory?
What is receivables turnover?
What is total assets turnover ratio?
What is operating cash flow?
What is the profit margin?
What is Return on Equity?
What is the DuPont identity?
1. Profit margin indicates operating efficiency
2. Total asset turnover ratio indicates efficiency of the utilisation of assets
3. Equity multiplier indicates financial leverage
What is the Price-Earnings ratio?
In which 2 ways can financial ratios be benchmarked?
2. Peer group analysis - using companies that compete on the same market, have same kind of assets, etc. a peer group is established from which the ratios are compared with each other.
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