Various Ratios Are Computed to Assess Different Aspects of a Company's

question 58

Essay

Various ratios are computed to assess different aspects of a company's financial condition and (or)strength.
Required:
In the table below,indicate which aspect of financial condition each specified ratio is designed to assess: $\begin{array}{|l|l|l|l|l|l|}\hline & & &&& \text { Stock } \\\hline &\text { Ratio }& \text { Liquidity } & \text { Solvency } & \text { Profitability } & \text { Market } \\\hline \text { 1. } & \text { Accounts receivable tumover } \\\hline \text { 2. } & \text { Average days to collect receivables } \\\hline 3 . & \text { Book value per share } \\\hline \text { 4. } & \text { Current ratio } \\\hline \text { 5. } & \text { Debt to equity ratio } \\\hline 6 . & \text { Dividend yield } \\\hline 7 . & \text { Earnings per share } \\\hline \text { 8. } & \text { Inventory turnover } \\\hline \text { 9. } & \text { Net margin } \\\hline \text { 10. } & \text { Average days to sell inventory } \\\hline \text { 11. } & \text { Number of times interest is earned } \\\hline \text { 12. } & \text { Plant assets to long-term liabilities } \\\hline \text { 13. } & \text { Price-eamings ratio } \\\hline \text { 14. } & \text { Quick ratio } \\\hline \text { 15. } & \text { Return on equity } \\\hline \text { 16. } & \text { Return on investment } \\\hline \text { 17. } & \text { Debt to assets ratio } \\\hline \text { 18. } & \text { Asset turnover ratio } \\\hline \text { 19. } & \text { Working capital } \\\hline\end{array}$

---

Definitions:

Umbilical Cord

The flexible cord-like structure connecting a fetus to the placenta, delivering nutrients and oxygen while removing waste.

Chorion

The outermost membrane surrounding an embryo in mammals, birds, and reptiles, contributing to the formation of the placenta in placental mammals.

Amnion

A thin membrane forming a closed sac around the embryo in birds, reptiles, and mammals.

Yolk Sac

An extra-embryonic membrane that provides food in the form of stored yolk to the developing embryo in eggs and early vertebrates.