Question

Match the financial ratios with their correct

Q: Answer-Match the financial ratios with their correct interpretation:

Current Ratio 2 Measures a companys 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.

interpretation:

A A-2, B-3, C-4, D-1

B A-1, B-4, C-3, D-2

C A-3, B-2, C-1, D-4

D A-4, B-2, C-3, D-1

E A-3, B-1, C-2, D-4

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Match the financial ratios with their correct

Solution