Administration and Executive AssistantTier 530 minintermediate

Financial Ratios from a Mini Statement

Calculate liquidity and profitability ratios, using only the right line items for each.

What you will learn

• Calculate the current ratio from current assets and current liabilities only
• Explain why a non-current item (property, plant and equipment; long-term debt) does not belong in that ratio
• Calculate gross margin as a percentage of revenue

Excel skills

Basic arithmetic, structured references · Financial Statement Analysis

The task

Nine companies' mini financial statements are on the Statements tab. I need two numbers for each one on the Ratios tab: the current ratio (a liquidity check) and the gross margin (a profitability check). Use only the line items that actually belong in each ratio.

You work in a real spreadsheet in your browser, and your answer is checked against hidden traps the moment you submit.

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