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Check my wor For each ratio, select the building block of financial statement analysis to which it best relates. 12.5 points

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S.No. Ratio Classification
1. Equity ratio SOLVENCY
2. Return on total assets PROFITABILITY
3. Dividend yield MARKET PROSPECTS
4. Book value per common share PROFITABILITY
5. Days' sales in inventory LIQUIDITY AND EFFICIENCY
6. Accounts receivable turnover LIQUIDITY AND EFFICIENCY
7. Debt-to-equity ratio SOLVENCY
8. Times interest earned SOLVENCY
9. Gross margin ratio PROFITABILITY
10. Acid-test ratio LIQUIDITY AND EFFICIENCY

Explanation:-

A profitability ratio measures of a company's ability to generate earnings related to sales, assets and equity.

Solvency ratio measure company's ability to meet its long term debts.

Liquidity ratios measure a company's ability to meet its current obligations.

Efficiency ratio measures a company's ability to use its assets to generate revenue.

Market Prospect ratios measures to compare publicly traded companies' stock prices with other financial measures such as earnings and dividend rates.

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