You are given the following information. What is your liquidity ratio? Annual disposable income: $45,000 Total liabilities: $17,400 Annual savings: $2,400 Long-term assets: $85,000 Current ratio: 2 Debt-to-asset ratio: 0.2 Select one: a. 0.90 b. 0.56 c. 0.89 d. 0.53
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
You are given the following information. What is your liquidity ratio?
- Annual disposable income: $45,000
- Total liabilities: $17,400
- Annual savings: $2,400
- Long-term assets: $85,000
- Current ratio: 2
- Debt-to-asset ratio: 0.2
Select one:
a.
0.90
b.
0.56
c.
0.89
d.
0.53
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