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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1081 |
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This ratio is used to determine the amount of income produced for each dollar that common stockholders have invested. Example: An ROE ratio of 0.0869 indicates that the company returned 8.69% for every dollar invested by common stockholders.
Liquidity Ratios
Liquidity ratios measure the organizations ability to meet short-term obligations...
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These include the current ratio and the quick ratio.
The current ratio is calculated by taking the total amount of current assets and dividing it by the total amount of current liabilities. This ratio is used to determine whether the company has a sufficient amount of current assets to pay off current liabilities...
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