Defining and Applying Financial Ratio Analysis


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question 1 of 3

What is a financial ratio?

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1. Which of the following statements explain the analysis of the current ratio?

2. Which of the following is the right formula for calculating the debt ratio?

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About This Quiz & Worksheet

This quiz and worksheet can help assess your knowledge of financial ratios. To pass the quiz you will need to understand terms like current ratio and debt ratio.

Quiz & Worksheet Goals

This quiz and worksheet can help you review:

  • Analysis of the debt ratio
  • How to calculate the debt ratio
  • Calculating the current ratio
  • Analysis of the current ratio

Skills Practiced

  • Information recall - access the knowledge you have gained regarding how to calculate the debt ratio
  • Knowledge application - use your knowledge to answer questions about financial ratio analysis
  • Interpreting information - verify that you can read information regarding the current ratio and interpret it correctly

Additional Learning

To learn more about financial ratio analysis, review the lesson titled Defining and Applying Financial Ratio Analysis. This lesson will help you:

  • Determine what a financial ratio is
  • Define liquidity
  • Understand what the debt ratio shows
  • Examine what efficiency ratios measure
  • Compare and contrast the debt ratio and current ratio