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Use the following two columns of items to answer the matching questions below:
-annual report
A)includes financial statements, a letter summarizing the recent performance, and other company information
B)measure of inflation that represents consumer products
C)statement of a firm's assets, liabilities, and net worth
D)measures a firm's revenues, expenses, and earnings for a specific time
Current Ratio
A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.
Du Pont Equation
A formula that breaks down the Return on Equity (ROE) into three key components: profit margin, asset turnover, and financial leverage, allowing for a deeper analysis of what drives a company's ROE.
Inventory Turnover
A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.
Gross Margin
A financial metric indicating the difference between revenue and the cost of goods sold (COGS), expressed as a percentage of revenue, highlighting the efficiency of a company in managing production costs relative to sales.
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