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      Question

      Match the financial ratios with their correct

      interpretation: 
      A A-2, B-3, C-4, D-1 Correct Answer Incorrect Answer
      B A-1, B-4, C-3, D-2 Correct Answer Incorrect Answer
      C A-3, B-2, C-1, D-4 Correct Answer Incorrect Answer
      D A-4, B-2, C-3, D-1 Correct Answer Incorrect Answer
      E A-3, B-1, C-2, D-4 Correct Answer Incorrect Answer

      Solution

      • Current Ratio (2) : Measures a company's ability to cover short-term obligations using current assets. 
      • Debt-to-Equity Ratio (3) : Assesses financial leverage by comparing total debt to shareholders' equity. 
      • Return on Equity (4) : Indicates how efficiently a company generates profit from shareholders’ investment. 
      • Net Profit Margin (1) : Reflects the percentage of revenue converted into profit after expenses. 

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