[amp_mcq option1=”Profitability ratio” option2=”Liquidity ratio” option3=”Turnover ratio” option4=”All of these” correct=”option4″]<\/p>\n
The correct answer is D. All of these.<\/p>\n
Financial ratios are a tool used to analyze a company’s financial statements. They can be used to compare a company’s performance to its own past performance, to the performance of other companies in the same industry, or to industry averages.<\/p>\n
There are three main types of financial ratios: profitability ratios, liquidity ratios, and turnover ratios.<\/p>\n
Profitability ratios measure a company’s ability to generate profit. Some common profitability ratios include return on assets (ROA), return on equity (ROE), and gross profit margin.<\/p>\n
Liquidity ratios measure a company’s ability to meet its short-term obligations. Some common liquidity ratios include current ratio, quick ratio, and cash ratio.<\/p>\n
Turnover ratios measure a company’s efficiency in using its assets to generate sales. Some common turnover ratios include inventory turnover ratio, accounts receivable turnover ratio, and accounts payable turnover ratio.<\/p>\n
Financial ratios can be a valuable tool for investors, analysts, and managers. They can be used to identify strengths and weaknesses in a company’s financial performance, and to track the company’s progress over time.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Profitability ratio” option2=”Liquidity ratio” option3=”Turnover ratio” option4=”All of these” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[656],"tags":[],"class_list":["post-8698","post","type-post","status-publish","format-standard","hentry","category-engineering-economics","no-featured-image-padding"],"yoast_head":"\n