Financial Statements

Ratios

Easy

Debt-equity ratio is a sub-part of:

short-term solvency ratio

long-term solvency ratio

debtors turnover ratio

inventory turnover ratio

✅ Correct Option: 2

Debt-equity ratio compares outside long-term debt to shareholders' funds, indicating the extent of leverage in the capital structure. It judges the firm's ability to meet long-term obligations and therefore falls under long-term solvency ratios.

2024

Calculate Trade Receivables Turnover Ratio.

2026: 13 May Shift 2

The higher current ratio is not a symbol of strength of a firm, rather it is the sign of:

2026: 12 May Shift 1

Simrit Ltd. has a current ratio of 3.5:1 and quick ratio of 2:1. If excess of current assets over quick assets as represented by inventories is Rs. 24,000, What will be the current assets in this case?

2025: 22 May Shift 2

The ideal quick ratio is

2022: 16 July Shift 2

Which of the following ratios is not a profitability ratio?

2022: 8 Aug Shift 2

A low stock turnover ratio indicates:

Debt-equity ratio is a sub-part of:

Solution

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