Ratio bingo

Exercise and reference answers

Clues and terms

1. Clue

   Current assets over liabilities.

   Item

   Current ratio

2. Clue

   Excludes inventory.

   Item

   Quick ratio

3. Clue

   Built on the most liquid asset.

   Item

   Cash ratio

4. Clue

   Debt against the asset base.

   Item

   Debt to assets

5. Clue

   Can it pay the interest.

   Item

   Interest cover

6. Clue

   Profit against sales.

   Item

   Profit margin

7. Clue

   Profit split per share.

   Item

   Earnings share

8. Clue

   Price over earnings.

   Item

   Price earnings

9. Clue

   Splits return on equity.

   Item

   DuPont

Instructions

Read each clue and tap the ratio it describes.

Explanation