Quiz for:
Understanding Key Financial Ratios

Question 1

What does the Current Ratio measure?

Question 2

Which ratio indicates a company's ability to meet short-term debt obligations without relying on inventory sales?

Question 3

Which of the following is classified as a Profitability Ratio?

Question 4

What does the Interest Coverage Ratio assess?

Question 5

How is the Gross Profit Margin calculated?

Question 6

When calculating the Price-to-Earnings-to-Growth (PEG) ratio, what is the denominator?

Question 7

The Dividend Yield Ratio is calculated using which formula?

Question 8

The Earnings per Share (EPS) formula is:

Question 9

Return on Equity (ROE) is calculated using which formula?

Question 10

How is the Debt to Assets Ratio (DTA) formulated?

Question 11

Which ratio represents Operating Profit divided by Capital Employed?

Question 12

What type of ratio is the Debt to Equity Ratio?

Question 13

Which ratio is calculated as (Accounts Receivable / Revenue) x 365?

Question 14

What does the Asset Turnover Ratio measure?

Question 15

Which financial statement provides a snapshot of a company's assets, liabilities, and equity at a specific point in time?

Question 16

What does the Quick Ratio exclude compared to the Current Ratio?