De f ining Ratios. There are no universally accepted definitions of financial ratios, but some of


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De f ining Ratios. There are no universally accepted definitions of financial ratios, but some of the following ratios make no sense at all. Substitute the correct definitions. long-te r m debt a. Debt-equity ratio = long-te r m debt + equity EBIT – tax b . Retu r n on equity = a v erage equity net income + interest c. Profit margin = sales total assets d. I n v ento r y tu r n o v er = a v erage i n v ento r y cu r rent liabilities e. Current ratio = current assets cu r rent assets – i n v entories f. Inte r v al measure = a v erage dai l y e xpenditure from operations sales g. A v erage collection period = a v erage rece iv a b les/365 cash + mar k eta b le securities + rece iv a b les h. Quick ratio = current liabilities

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