Practice - Ratio Analysis
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Practice Questions
Test your understanding with targeted questions
What is the formula for calculating the Current Ratio?
💡 Hint: Think about a company's short-term assets versus its short-term debts.
Define the term 'Net Profit Ratio'.
💡 Hint: Consider how profit relates to total sales made by the business.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Current Ratio measure?
💡 Hint: Think about how well a company can cover its immediate debts.
True or False: A higher Debt-Equity Ratio indicates lower financial risk.
💡 Hint: Consider how debt affects a company's stability.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A company has current assets of ₹1,000,000 and current liabilities of ₹500,000. Analyze the implications of its Current Ratio.
💡 Hint: Consider the importance of being above 1:1 for immediate financial stability.
If a company's total debt is ₹1,000,000, total equity is ₹500,000, and it has a Net Profit of ₹200,000 with net sales of ₹1,000,000, calculate and interpret its Debt-Equity Ratio and Net Profit Ratio.
💡 Hint: Think about how leverage influences business risk.
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