Finance exam questions on ratios

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Attempt these Finance exam questions on ratios with answers as this is an important part of the finance for non financial professionals.




Finance exam questions on ratios

Finance question 1
Financial reports published by companies and organisations can be used by those of us who are not employed by that company in trying to evaluate the financial ________ of that company.


Finance question 2
It would great if we could just walk into the company and poke our noses into all that sensitive information, but unfortunately we cant, so we have to rely on the reports published by the companies. Things like profit margins, costing products, Rand D is just too price sensitive – this is called _________ information and companies do not want that disclosed to their competitors.

Below are two companies which most of us will be familiar with – Ford Motor Company and General Motors.

Below is some information from their respective financial reports.

 

$ in billions  Ford  GM
  2014 2015 2016 2014
Net income 3.2 7.2 5.6 4
Total revenue 144.1 146.9 133.6 155.9
Total assets 208.5 292.2 189.4 177.7
Total equity 24.8 26.1  16  36
Profitability  2.2%  4.9%  4.2%  2.6%
Efficiency  0.69%  0.73%  0.71%  0.88%
Leverage  8.4  7.7  11.8  4.9
ROE  12.9%  27.6%  35.0%  11.1%

 

Finance question 3
Profitability is a comparison of net income to sales(Net Income ÷ Sales) which for Ford in 2014 was _____%. This means that for every one dollar made in sales they made a net profit of $____.





Finance question 4
In 2014 its profitability was ____% – we need to ask why the fall and why is GM’s profitability at ______% greater than Fords.

This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

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