Financial Ratios Flashcards
1
Q
Total Liabilities/Total Assets
A
Debt Ratio
2
Q
Current Assets/Current Liabilities
A
Current Ratio
3
Q
Total S.E./Total Assets
A
Equity Ratio
4
Q
Any ratio # above 1.5 is considered as safe.
A
Current Ratio
5
Q
A bigger percentage is riskier to the company.
A
Debt Ratio
6
Q
A bigger percentage is preffered.
A
Equity Ratio
7
Q
A bigger percentage is preffered.
A
Equity Ratio