Ratio Analysis

  • For the following ratio questions, refer to the balance sheet information for the SAP Group presented.
  • 1. The current ratio for SAP Group at 31 December 2009 is closest to
  • A. 1.54.
  • B. 1.86.
  • C. 2.33.
  • 2. Which two of the following ratios decreased in 2009 relative to 2008?
  • A. Cash.
  • B. Quick.
  • C. Current.
  • D. Debt to equity.
  • E. Financial leverage.
  • F. Long-term debt to equity.
  • 3. For the ratios listed in question 2, how are the changes interpreted?