Match the financial ratio to its formula

Exercise and reference answers

Matching pairs

1. Left

   Current Ratio

   Right

   Current Assets / Current Liabilities

2. Left

   Quick Ratio

   Right

   (CA − Inventory) / Current Liabilities

3. Left

   Debt-Equity Ratio

   Right

   Total Debt / Shareholders' Equity

4. Left

   Return on Equity

   Right

   Net Income / Shareholders' Equity