| Measures the ability of a business to generate profits. |
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| Measures a company's ability to pay its short term obligations. |
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| Measures the ability of a company to pay its long term liabilities. |
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| Determines how efficiently a company is performing. |
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| Example of a Profitability Ratio. |
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| Example of a Liquidity Ratio. |
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| Example of a Solvency Ratio. |
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| Example of an Activity (Turnover) Ratio. |
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| Ratio that measures a company's ability to ay off short term debt with cash. |
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| Ratio calculated by subtracting current liabilities from current assets. |
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| Ratio that measures the net income earned as a percentage of sales. |
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