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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.
Complete the sentence with the appropriate word.
After examining the facts in the case, the judge used his _________ to grant bail to the accused.
The director had high hopes for the film and hence borrowed a huge _________ for production from various financial institutions but the __________ hav...
Awash in green with wisps of clouds drifting through, this tranquil village up in the mountains of Uttarakhand is truly magical. With panoramic views o...
In the question given below, two sentences are given with one blank each. From the given options, choose the word that correctly fits both sentences.
Fill in the blanks with appropriate words/phrases from the options.
The Consulate in Hyderabad was closed on March 16 after the government ____...
It was after his death that the masterpiece _____________ by the poet got exposed to the world.
If sunlight will not come for days together, it will cause lot of health problems.
Henry Ford was a pioneer during the________ (later) days/years of car manufacture.
The artist's latest masterpiece is a ___________ of colors and emotions, capturing the essence of nature's beauty in a single canvas.
In the question below, a sentence is given with two blanks to be filled in with appropriate words. Four alternatives are suggested for each question. Ch...