These ratios are a strong indicator of the quality of management, since they reveal how well management is utilizing company resources. Sales to working capital ratio false Activity ratios true Liquidity ratios false None of the above false Single These ratios measure how well a company performs in generating a profit. Profitability ratios true Leverage ratios false Contribution margin ratio false None of the above false Single This is the most fundamentally important set of ratios, because they measure the ability of a company to remain in business. Fixed asset turnover ratio false Inventory turnover ratio false Liquidity ratios true None of the above false Single These ratios reveal the extent to which a company is relying upon debt to fund its operations, and its ability to pay back the debt. Leverage ratios true Debt to equity ratio false Net profit ratio false None of the above false Single Used to calculate the relative size of one number in relation to another. Ratios true Liquidity ratios false Margin of safety false None of the above false Single Calculates the amount by which sales must drop before a company reaches its breakeven point. Gross profit ratio false Margin of safety true Profitability ratios false None of the Above false Single Shows the profits left after variable costs are subtracted from sales. Contribution margin ratio true Current ratio false Fixed asset turnover ratio false None of the Above false Single Measures a company's ability to generate sales from a certain base of fixed assets. Contribution margin ratio false Inventory turnover ratio false Fixed asset turnover ratio true None of the Above false Single Shows the extent to which management is willing to fund operations with debt, rather than equity. Debt to equity ratio true Net profit ratio false Quick ratio false None of the Above false Single Shows the amount of working capital required to support a given amount of sales. Sales to working capital ratio true Cash coverage ratio false Return on net assets false None of the Above false Single