Ccurrent Ratio

Question

Quick Ratio
Working Capital
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Total Debt to Assets Ratio
Long-term Debt to Assets Ratio
Total Debt to Equity Ratio

Word bank: Demonstrates the relationship between current assets and current liabilities
Examines the relationship between specific current assets, called quick assets and current liabilities
demonstrates the amount of current assets that would be left to run the company on should all of the current liabilities paid off
compares the gross pay to net sales
compares the income from operations with net sales
indicates how much of a company's assets are financed by loans
measures the relationship between the total debt and the assets that back up the debt
the key financial ratio used to determine a company's financial standing
compares net income to net sales

Answer 1

Current Ratio - Demonstrates the relationship between current assets and current liabilities
Quick Ratio - Examines the relationship between specific current assets, called quick assets and current liabilities
Working Capital - demonstrates the amount of current assets that would be left to run the company on should all of the current liabilities paid off
Gross Profit Margin - compares the gross pay to net sales
Operating Profit Margin - compares the income from operations with net sales
Net Profit Margin - compares net income to net sales
Total Debt to Assets Ratio - indicates how much of a company's assets are financed by loans
Long-term Debt to Assets Ratio - measures the relationship between the total debt and the assets that back up the debt
Total Debt to Equity Ratio - the key financial ratio used to determine a company's financial standing