Ratio Analysis
This lesson will introduce you to the basics of ratio analysis. Brushing up on these
concepts now will help you tackle your finance coursework later.
Press play to watch the first presentation below. Click on the numbers to navigate through
the lesson, and then complete the Concept Check at the end to cement your skills and
receive credit.
Concept Check
PNG Company Comparative Balance Sheets
Use the following comparative balance sheets, income statement, and additional information to answer questions
1. What was PNG Company's current ratio for the year 20X1?
7.74
3.32
2.47
2.66
2. What was PNG Company's debt to equity ratio for the year 20X1?
0.22
0.46
1.39
0.68
3. What was PNG Company's inventory turnover for the year 20X1?
5.30 times
27.62 times
34.35 times
3.05 times
4. What was PNG Company's return on equity for the year 20X1?
36.39%
74.66%
42.44%
274.82%
5. What was PNG Company's profit margin for the year 20X1?
12.02%
5.76%
36.39%
2.80%