_____ Are Calculations Typically Used to Track a Business's Liquidity

question 89

Multiple Choice

_____ are calculations typically used to track a business's liquidity, efficiency, and profitability over time compared to other businesses in its industry.

• A) Market basket analyses
• B) Cash flow analyses
• C) Financial ratios
• D) Balance sheets

---

Definitions:

Du Pont Analysis

A framework for analyzing a company's return on equity (ROE) by breaking it down into its constituent components to assess operational efficiency.

Total Assets Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using shareholders’ funds to generate profit.

Debt Ratio

A financial metric that assesses a firm's level of indebtedness by dividing its total liabilities by its total assets.