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Liquidity ratios analyze the ability of a company to pay off both its current liabilities as they become due as well as their long-term liabilities as they become current. 1. Test of liquidity : Quick Ratio, Acid test Ratio, Current Ratio, Working Capital ratio Profitability ratios compare income statement accounts and categories to show a company’s ability to generate profits from its operations. Profitability ratios focus on a company’s return on investment in inventory and other assets. These ratios basically show how well companies can achieve profits from their operations. 2. Test of Profitability : Return of Investment/Asset/Equity, Return on capital Employed Solvency ratios , also called leverage ratios, measure a company’s ability to sustain operations indefinitely by comparing debt levels with equity, assets, and earnings. 3. Test of solvency : Debt-to-Equity Ratio Activity ratios aka asset utilization ratios or operating efficiency ratios measure how efficiently a company performs its daily tasks such as managing its various assets. [if !supportLists]-->4. [endif]--> Test of activity ratio : Inventory turnover, Receivables turnover, Payables turnover, Working capital turnover, Total asset turnover.
What will come in place of ‘?’ in the following equation, if ‘+’ and ‘–‘ are interchanged and ‘×’ and ‘÷’ are interchanged?
...'←' stands for '+', '→' stands for "–", '↑' stands for '÷', '↓' stands for 'x', '^' stands for '=', then which of the following alternatives ...
Three of the following four are alike in a certain way and so form a group.
Which one does not belong to that group?
In the following number-pairs, the second number is obtained by applying certain mathematical operations to the first number. Select the set in which th...
Five friends Amit, Bipin, Chandan, Dinesh and Edwin are sitting on a beach. Amit is sitting next to Bipin, Chandan is sitting next to Dinesh is not sitt...
Select the option that is related to the third term on the same basis as the second term is related to the first term.
Warrior : Sword :: Author : ?
Which diagram correctly represents the relationship of pigeons, birds, dogs?
A, B, C, D, E, F and G are of different heights. A is shorter than only two people. D is taller than only B. F is taller than A but shorter than G. C is...
Read the directions carefully and answer the following questions.
Eight ministers A, B, C, D, E, F, G and H are sitting on a bench in two rows,...