State whether the following ratios are classified as
a.ratios that measure long-term solvency,
b.ratios that measure profitability,
c.ratios used to analyze the company's stock as an investment,or
d.ratios that measure short-term liquidity.
1.________ Return on sales
2.________ Earnings per share
3.________ Dividend-yield
4.________ Average collection period in days
5.________ Total-debt-to-total assets ratio
6.________ Price-earnings ratio
7.________ Quick ratio
8.________ Total-debt-to-total-equity
Correct Answer:
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2.b
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