D775 Section 2 Lesson 1

1. Profit ________ is measured as net income divided by total revenue.
3. _________ turnover calculates the number of times a company sells its receivables per year.
6. ___________ are a company’s obligations to third parties.
7. Capital _________ is the mixture of debt and equity that a firm uses to finance the company.
8. ________ liabilities are generally due within one year.
9. These types of ratios are also known as efficiency ratios.
10. The _______ ratio is also knows as the acid-test ratio.
11. Resources owned by the company that have economic value
13. __________ ratios measure the company’s ability to meet its short-term obligations.

1. ________ value is the value that others are willing to pay.
2. ______________ ratios assess the company’s ability to generate earnings.
4. Revenue minus costs of goods sold minus depreciation
5. ___________ is a non-cash expense.
6. These types of ratios measure how much debt is used to finance the firm.
12. Return on _______ is a type of profitability ratio that gauges the profitability generated from shareholders’ equity.