ch 3 ratios
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Last updated 6:27 PM on 3/31/26
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6 Terms
1
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liquidity ratios
ability to meet current obligations
2
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currents ratio
current assets/ current liabilities
3
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quick ratio (acid test)
quick assets/current liabilities
4
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solvency ratios
ability to meet al obligations
5
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debt to equity ratio
total liabilities/ total shareholders equity
6
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times interest earned ratio
net income+income tax+interest expense/interest expense
