The Following Categories of Ratios Are Used in Financial Statement

question 31

Short Answer

The following categories of ratios are used in financial statement analysis:
a.Liquidity
b.Operating efficiency (also referred to as Activity)
c.Leverage
d.Profitability
e.Market measures
Classify the following ratios according to the above categories:
(1) Dividend payout
(2) Fixed charge coverage
(3) Cash flow margin
(4) Days inventory held
(5) Times interest earned
(6) Net profit margin
(7) Earnings per share
(8) Fixed asset turnover
(9) Total asset turnover
(10) Current ratio

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Definitions:

Level of Technology

The current state of technological advancement and capability within a society or industry, impacting productivity and efficiency.

Output Per Worker

The average production or number of goods and services produced by an individual worker within a certain period.

Capital Cost Allowance

A tax deduction in some jurisdictions for depreciation of assets, reflecting the wear and tear or obsolescence of physical assets.

Declining Balance

A method of calculating depreciation for an asset, whereby the asset loses value at a decreasing rate over time.