D076 UNIT 4 EXAMS

liquidity ratio - is a measure of not only how much cash you have but also how easily you can convert short-term assets into cash. activity ratio - the firm's operational efficiency and profitability. activity ratio - efficiency ratio leverage ratio - financing ratios or solvency ratios leverage ratio - how the firm is financed. profitability ratio - based on either sales or asset investment market ratios - used to evaluate the current share price of a public firm's stock. liquidity ratio - What type of ratio is used to assess a firm's ability to meet short-term obligations without raising external capital? Because different types of ratios are needed to get information about different parts of a firm - Why are several different types of ratios used to analyze a firm? What proportions of equity and debt a firm uses to finance its assets - What do leverage ratios describe? liquidity ratio - Which type of ratio is a current ratio?