Question: Define each of the following terms:
a. Liquidity ratios: current ratio; quick, or acid test, ratio
b. Asset management ratios: inventory turnover ratio; days sales outstanding (DSO); fixed assets turnover ratio; total assets turnover ratio
c. Financial leverage: debt ratio; times-interest-earned (TIE) ratio; coverage ratio
d. Profitability ratios: profit margin on sales; basic earning power (BEP) ratio; return on total assets (ROA); return on common equity (ROE)
e. Market value ratios: price/earnings (P/E) ratio; price/cash flow ratio; market/ book (M/B) ratio; book value per share
f. Trend analysis; comparative ratio analysis; benchmarking
g. Du Pont equation; "window dressing"; seasonal effects on ratios