[amp_mcq option1=”a-2, b-1, c-4, d-3″ option2=”a-3, b-2, c-1, d-4″ option3=”a-4, b-3, c-1, d-2″ option4=”a-3, b-1, c-4, d-2″ correct=”option1″]<\/p>\n
The correct answer is: A. a-2, b-1, c-4, d-3<\/p>\n
Leverage ratio measures the relationship between debt and equity. It shows how much debt a company has compared to its equity. A high leverage ratio indicates that a company is using a lot of debt to finance its operations. This can be risky, as it means that the company is more likely to go bankrupt if it cannot make its debt payments.<\/p>\n
Liquidity ratio measures a company’s ability to meet its short-term obligations. It is calculated by dividing current assets by current liabilities. A high liquidity ratio indicates that a company has a lot of liquid assets, which are assets that can be easily converted into cash. This means that the company is more likely to be able to meet its short-term obligations.<\/p>\n
Turnover ratio measures the efficiency with which a company uses its assets to generate sales. It is calculated by dividing sales by average assets. A high turnover ratio indicates that a company is using its assets efficiently to generate sales. This means that the company is more likely to be profitable.<\/p>\n
Profitability ratio measures a company’s ability to generate profits. It is calculated by dividing net income by sales. A high profitability ratio indicates that a company is generating a lot of profits from its sales. This means that the company is more likely to be successful.<\/p>\n
I hope this helps!<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”a-2, b-1, c-4, d-3″ option2=”a-3, b-2, c-1, d-4″ option3=”a-4, b-3, c-1, d-2″ option4=”a-3, b-1, c-4, d-2″ correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-51463","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n