6. USAEO Quantitative and Graphical Analysis

Ratios Shares And Margins — Quiz

Test your understanding of ratios shares and margins with 5 practice questions.

Practice Questions

Question 1

A firm’s current ratio is calculated as the ratio of current assets to current liabilities. If a firm has current assets of $500,000 and current liabilities of $200,000, what is its current ratio?

Question 2

A company’s profit margin is defined as the ratio of net income to total revenue. If a company has total revenue of $1,200,000 and net income of $300,000, what is its profit margin?

Question 3

A firm has a debt-to-equity ratio of 1.5. If its total debt is $900,000, what is its total equity?

Question 4

In a market, firm A has a market share of 40%, firm B has a market share of 35%, firm C has a market share of 15%, and all other firms combined have the remaining share. What is the combined market share of all other firms?

Question 5

A company’s return on equity (ROE) is calculated as the ratio of net income to shareholder equity. If a company has net income of $150,000 and shareholder equity of $500,000, what is its ROE?