Vol. 3 LM2 Balance Sheet Ratios Flashcards
classification
current ratio
Balance Sheet
liquidity ratio
Balance Sheet
classification
quick ratio
Balance Sheet
liquidity ratio
Balance Sheet
Classification
cash ratio
Balance Sheet
liquidity ratio
Balance Sheet
Classification
Long-term debt-to-equity ratio
Balance Sheet
solvency ratio
Balance Sheet
classification
Debt-to-equity ratio
Balance Sheet
solvency ratio
Balance Sheet
classification
Total debt ratio
Balance Sheet
solvency ratio
Balance Sheet
classfication
Financial leverage ratio
Balance Sheet
solvency ratio
Balance Sheet
indication
current ratio
Balance Sheet
company’s ability to meet current liabilities
Balance Sheet
what is it used to measure
quick ratio
Balance Sheet
company’s ability to meet current liabilities
Balance Sheet
what is it used to measure
cash ratio
Balance Sheet
company’s ability to meet current liabilities
Balance Sheet
indication
Long-term debt-to-equity ratio
Balance Sheet
Financial risk and financial leverage
Balance Sheet
what is it used to measure
Debt-to-equity
Balance Sheet
Financial risk and financial leverage
Balance Sheet
what is it used to measure
Total debt ratio
Balance Sheet
Financial risk and financial leverage
Balance Sheet
indication
Financial leverage
Balance Sheet
Financial risk and financial leverage
Balance Sheet
calucation
Current ratio
Balance Sheet
Current assets / Current liabilities
Balance Sheet
calculation
Quick ratio
Balance Sheet
(Cash + Marketable securities + Receivables) / Current liabilties
Balance Sheet
calculation
Cash ratio
Balance Sheet
(Cash + Marketable securities) / Current liabilities
Balance Sheet
calculation
Long-term debt-to-equity ratio
Balance Sheeet
Total long-term debt / Total equity
Balance Sheet
calculation
Total debt ratio
Balance Sheet
Total debt / Total assets
Balance Sheet
calculation
Financial leverage
Balance Sheet
Total assets / Total equity
Balance Sheet
Fill in the blank
___ refers to a company’s ability to meet its short-term financial commitments.
Balance Sheet
Liquidity
Balance Sheet
Fill in the blank
____ refers to a company’s ability to meet its financial obligations over the longer term.
Balance Sheet
Solvency
Balance Sheet
An investor worried about a company’s short-term solvency would use
A. current ratio
B. return on equity
C. financial leverage ratio
Balance Sheet
A. current ratio
Current ratio is liquidity ratio, which is revelant to short-term liabilities.
Balance Sheet
The most stringent test of a company’s liquidity
A. cash ratio
B. quick ratio
C. current ratio
Balance Sheet
A. cash ratio
because it sticks strictly to cash or cash-equivalent holdings
Balance Sheet
An investor worried about a company’s long-term solvency would use
A. current ratio
B. return on equity
C. debt-to-equity ratio
Balance Sheet
C. debt-to-equity ratio
Balance Sheet
