Financial Ratio 2

Question 0

Sales

Answer 0

Ventes

Question 1

Profitability

Answer 1

Rentabilité

Question 2

Assets

Answer 2

Actifs

Question 3

Gross profit margin

Answer 3

Marge brute

Question 4

Profitability

Answer 4

Gross profit(sales-cost of goods sold)/sales

Question 5

Return on assets

Answer 5

Net profit / total Assets

Question 6

Return on equity (ROE)

Answer 6

Net profit/ shareholders’ equity

Question 7

Shareholders’ equity

Answer 7

Capitaux propres

Question 8

Leverage

Answer 8

Effet de levier

Question 9

Interest cover

Answer 9

EBIT/interest charges

Question 10

Definition of interest cover

Answer 10

It compares a business’s annual interest payments with its earnings before interest and tax, and shows how easily the company can pay long-term debt cost.
A low interest cover shows that business is having difficulties generating the cash necessary for its interest payment

Question 11

Return on equity

Answer 11

It shows how big company’s profit is compared with the shareholders’s equity or funds

Question 12

Profit margin

Answer 12

Marge bénéficiaire