D076 Types of Ratios WGU EXAM 100%
Activity Ratios - ✔✔A category of ratios that measure how well a company uses its assets to generate
sales or cash, showing the firm's operational efficiency and profitability.
Leverage Ratios - ✔✔A category of ratios that consider how a firm is financed.
Liquidity Ratios - ✔✔A category of ratios that measure a firm's ability to meet short-term obligations.
Market Ratios - ✔✔A category of ratios that are used to evaluate the current share price of a public
firm's stock.
Profitability Ratios - ✔✔A category of ratios that are commonly used to directly judge how well
management is doing as they strive to maximize owner wealth.
Activity Ratios - ✔✔A category of ratios that measure how well a company uses its assets to generate
sales or cash, showing the firm's operational efficiency and profitability.
Leverage Ratios - ✔✔A category of ratios that consider how a firm is financed.
Liquidity Ratios - ✔✔A category of ratios that measure a firm's ability to meet short-term obligations.
Market Ratios - ✔✔A category of ratios that are used to evaluate the current share price of a public
firm's stock.
Profitability Ratios - ✔✔A category of ratios that are commonly used to directly judge how well
management is doing as they strive to maximize owner wealth.
