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

---

Definitions:

Tariffs

Taxes on imported goods, implemented by a government to protect domestic industries from foreign competition or to generate revenue.

Textiles

Materials made from fibers, filaments, threads, or yarns, suitable for use in the production of fabrics and other goods.

Price Of Labor

Refers to the wage rate, or the amount of compensation workers receive in exchange for their labor.

Sri Lanka

An island country in South Asia, located in the Indian Ocean southwest of the Bay of Bengal and southeast of the Arabian Sea.