D104 OA 2 Ratios Questions with Verified
Correct Answers
Asset Turnover Ratio
net sales/average total assets
Profit Margin Ratio
Net Income / Total Sales
Rate of Return on Assets
net income/average total assets
Current Ratio
Current Assets / Current Liabilities
Acid-Test Ratio
(Cash + Short-Term Investments + Net Receivables) / Current Liabilities
Rate of Return on Common Stock Equity
(Net Income - Preferred Dividends) / Average Common Stockholders' Equity
Payout Ratio
Cash Dividends / (Net Income - Preferred Dividends)
Book Value Per Share
Common Stockholders' Equity / Outstanding Shares
Debt to Assets Ratio
Total Liabilities / Total Assets
Correct Answers
Asset Turnover Ratio
net sales/average total assets
Profit Margin Ratio
Net Income / Total Sales
Rate of Return on Assets
net income/average total assets
Current Ratio
Current Assets / Current Liabilities
Acid-Test Ratio
(Cash + Short-Term Investments + Net Receivables) / Current Liabilities
Rate of Return on Common Stock Equity
(Net Income - Preferred Dividends) / Average Common Stockholders' Equity
Payout Ratio
Cash Dividends / (Net Income - Preferred Dividends)
Book Value Per Share
Common Stockholders' Equity / Outstanding Shares
Debt to Assets Ratio
Total Liabilities / Total Assets
