ZuoTi.Pro
Question

Which of the following ratios would be considered a measurement of short-term liquidity? Select one: a....

Which of the following ratios would be considered a measurement of short-term liquidity?

Select one:

a. Quick ratio

b. Times interest earned

c. Debt ratio

d. Return on equity

e. Earnings per share

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Correct Answer: Quick Ratio.

Explanation:

Quick ratio calculates a company’s ability to meet its short-term obligations with its most liquid assets.

Times Interest Earned (TIE) ratio measures a company’s ability to meet its debt obligations.

Debt ratio is a financial ratio that indicates the percentage of a company’s assets that are acquired via creating debt.

The return on equity ratio tells the owner how much profit the company can earn from shareholder’s equity.

EPS shows how much money a company earns for each share of its stock. Earnings per share are calculated by dividing company’s profit divided by the number of common stock shares it has outstanding.

End of answer.

Please give thumbs up. It will be highly appreciated.

Thanks.

0 0
Add a comment
Know the answer?
Add Answer to:
Which of the following ratios would be considered a measurement of short-term liquidity? Select one: a....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Which of the following would be considered liquidity or short-term solvency ratios? quick ratio; cash ratio....

    Which of the following would be considered liquidity or short-term solvency ratios? quick ratio; cash ratio. quick ratio; times interest earned ratio (TIE). current ratio; long-term debt ratio. current ratio; inventory turnover ratio;

  • Which of the following ratios are measures of a firm's short-term liquidity? 1. Cash coverage ratio....

    Which of the following ratios are measures of a firm's short-term liquidity? 1. Cash coverage ratio. II. Interval measure. III. Debt-equity ratio. IV. Quick ratio. V. Fixed asset turnover

  • Please list the formula and definition of each term this will be your cheat sheet Liquidity...

    Please list the formula and definition of each term this will be your cheat sheet Liquidity ratios measure Working capital = Current ratio = Current cash debt coverage= Inventory turnover= Days in inventory= Accounts receivable turnover= Average collection period = Solvency ratios= Debt to assets ratio= Times interest earned = e Free cash flow = Profitability ratios = Earnings per share = Price-earnings ratio = Gross profit rate = Profit margin = Return on assets = Asset turnover = Payout...

  • Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...

    Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Starbucks for 2018 and 2017 follows. ($ millions) Cash 2018 2017 $ 8,756.3 $2,462.3 181.5 228.6 Short-term investments Accounts receivable 693.1 870.4 Current assets 12,494.2 5,283.4 5,684.2 4,220.7 349.9 Current liabilities Short-term debt Long-term debt Total liabilities Interest expense Capital expenditures Equity Cash from operations Earnings before interest and taxes 9,090.2 3,932.6 22,980.6 8,908.6 170.3 92.5 1,976.4 1,519.4 1,175.8 5,457.0 11,937.8 4,251.8 3,883.3 4,134.7...

  • 1) Which of the following ratios would be used to access a company’s ability to survive...

    1) Which of the following ratios would be used to access a company’s ability to survive a four-year cyclical business downturn? a. Long-term debt to equity ratio b. Quick ratio c. Times interest earned d. Return on assets 2) Which of the following ratios would be best used to access the performance of company management in increasing shareholder wealth? a. Gross profit margin b. Economic Value Added c. Dividend yield d. Book value 3) What is the ABC Company’s coverage...

  • Which of the following is not a liquidity ratio? Select one: O a. Current ratio b....

    Which of the following is not a liquidity ratio? Select one: O a. Current ratio b. Quick ratio c. Debt-to-equity ratio d. Interest coverage ratio

  • Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...

    Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...

  • Based on the information given for the ratios for 2010 and 2009: a. Has liquidity position...

    Based on the information given for the ratios for 2010 and 2009: a. Has liquidity position improved or worsened? Explain. b. Has the company's ability to manage its assets improved or worsened? Explain. c. How has the company's profitability changed during the last year? Ratio Analysis 2010 2009 Industry Avg Liquidity Ratios    Current Ratio 2.44 2.52 2.58    Quick Ratio 0.58 0.65 1.53 Asset Management Ratios    Inventory Turnover 5.00 7.14 7.69    Days Sales Outstanding 45.63 43.80 47.45...

  • Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...

    Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...

  • 11.Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...

    11.Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,376.73 $ 1,503.36 Accounts receivable 1,097.16 735.30 Current assets 3,563.56 3,168.33 Current liabilities 3,285.39 6,057.95 Long-term debt 16,940.81 3,351.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,628.42 25,743.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 9.89 155.98 Earnings before interest and taxes 1,589.84 1,877.84 (a)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT