Finance · Financial Ratios

Finance — Financial Ratios

Recall the purpose and formulas of common liquidity, efficiency, solvency, and profitability ratios.

20 cardsIntroductory university / professional studyIntermediate

A focused review

Topics covered

financial ratiosfinanceaccountingliquidityprofitability

Take a look inside

Showing 5 of 20

Question 01What is the purpose of financial ratio analysis?

Answer

It summarizes relationships in financial statements to support comparisons over time or with relevant peers.

Question 02What do liquidity ratios assess?

Answer

A company's ability to meet short-term obligations as they come due.

Question 03What is the current ratio formula?

Answer

Current assets ÷ current liabilities.

Question 04What is a common quick ratio formula?

Answer

(Cash + short-term investments + net receivables) ÷ current liabilities; exact conventions can vary.

Question 05Why does the quick ratio usually exclude inventory?

Answer

Inventory may take time to sell and convert into cash, so it is less immediately liquid than cash or receivables.

Import the deck you downloaded

The downloaded JSON uses Rivio's deck_name, question, and answer format. Rivio recognizes those fields and suggests them automatically.

1
Download the JSON deck
Save the file to your device.
2
Open Rivio → Flashcards → Import Deck
Choose the downloaded file and select a subject or deck destination.
3
Check the import preview
Question and answer fields are suggested for this format. Review the cards, then import.
4
Start reviewing
Open the imported deck in Rivio and practise recall.

The preview shows a sample of the deck. The download contains all 20 cards.

Use these references to check definitions and connect the cards to your course material.