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10 Cards in this Set
- Front
- Back
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This type of financial analysis express each financial statement component as a percent of sales
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comparative analysis
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what data do you compare with using comparative analysis
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digest data
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What are the major areas of ratio analysis
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solvency
efficiency profitability |
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The overall ability of the firm to pay its legal debts
is the definition of |
solvency
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How well the manager is using available capital
is the definition of |
efficiency
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bottom line is use to describe what area of the ratio analysis?
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profitability
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True or False: profitability is an important, but not only, measure of business success
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True
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this solvency ratio is equal to current assets over current liabilities
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current ratio
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this solvency ratio is equal to (cash + AR) over current liabilities
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acid test ratio
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What is the usual range of the current ratio and the acid test ratio respectively
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current ratio ≥ 2:1
acid test ratio ≥ 1:1 |
