Practice - Types of Ratios
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Practice Questions
Test your understanding with targeted questions
What is the formula for the current ratio?
💡 Hint: Remember to include only current assets and liabilities.
What does the quick ratio indicate?
💡 Hint: Think about what quick assets are.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does the liquidity ratio assess?
💡 Hint: Focus on the short-term aspect of financial stability.
True or False: A debt-equity ratio higher than 1 indicates a company is primarily financed by debt.
💡 Hint: Think about the implications of high debt financing.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Given a company with Current Assets of ₹500,000, Inventory of ₹100,000, Current Liabilities of ₹250,000, calculate both the Current Ratio and Quick Ratio.
💡 Hint: Remember to extract the quick assets from total current assets for quick ratio.
A company has long-term debt of ₹600,000 and total equity of ₹400,000. Calculate the debt-equity ratio and comment on its financial health.
💡 Hint: Think about what a ratio greater than 1 indicates regarding leverage.
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