It is concerned with reporting and communicating a business’ information and performance to its external stakeholders. Finance false Business finance false Financial accounting true Financial management false Single It is calculated by dividing current assets by current liabilities. Current ratio true Quick ratio false Liquidity ratio false Cash ratio false Single In examining these ratios, users of the financial statements can understand the company’s ability to meet current obligations using its liquid assets. Current ratio false Quick ratio false Liquidity ratio true Cash ratio false Single It measures the ability of the company to pay long-term debt. Debt to Equity Ratio false Net Profit Margin false Profitability Ratio false Time Interest Earned Ratio true Single It is also called the common-size analysis where balances in the financial statements are seen as percentages of a common base within the year. Horizontal analysis false Vertical analysis true Comparative statement false Cash flow statement false Single This ratio is computed by dividing the gross profit to the net sales. Return on assets false Net profit margin false Gross profit margin true Return on sales false Single This ratio measures how many times the company’s inventory is converted into sales. Inventory turnover ratio true Dividend payout ratio false Dividend yield ratio false Price earnings ratio false Single This ratio measures the amount of assets that is funded by equity. Solvency ratio false Cash ratio false Debt ratio false Equity ratio true Single This ratio measures the use of debt to finance operations and it provides a measure of the relative amount of resources contributed by the creditors and the owners of the business. Time Interest Earned Ratio false Equity Ratio false Debt to Equity Ratio true Profitability Ratio false Single It measures the rate of earnings per share of every common stockholder. Price Earnings Ratio false Earnings per share true Growth Ratio false Dividend Yield Ratio false Single