What Basel III capital ratio is Common Equity Tier 1 capital divided by risk-weighted assets?
Answer
Common Equity Tier 1 ratio (CET1)
47 Financial Ratios Trivia Questions with Answers
47 public questions with answers, drawn from the well. How many can you answer?
Financial ratios trivia tests how well you can interpret the numbers behind companies, banks, and investment decisions. Questions cover profitability, valuation, solvency, liquidity, capital adequacy, and credit analysis, including measures such as the earnings yield, interest coverage ratio, and Common Equity Tier 1 ratio.
You may also encounter ratios used in major analytical frameworks, such as retained earnings to total assets in the Altman Z-score, or return on equity multiplied by the retention ratio to calculate sustainable growth. This collection suits finance students, business professionals, investors, and pub-quiz teams looking for a more technical challenge. It works especially well for classroom review, accounting study groups, or specialist game nights.
What ratio is EBITDA divided by interest expense?
Answer
EBITDA coverage ratio
What bank ratio is non-interest expenses divided by revenue?
Answer
Efficiency ratio
What financial ratio is the inverse of the price-to-earnings ratio?
Answer
Earnings yield
What ratio is retained earnings divided by total assets, used in the Altman Z-score?
Answer
Retained earnings to total assets
What ratio is calculated as return on equity multiplied by the retention ratio?
Answer
Sustainable growth rate
What ratio is income tax expense divided by pre-tax income?
Answer
Effective tax rate
What ratio is calculated as earnings before tax divided by revenue?
Answer
Pre-tax profit margin
What ratio measures net income as a percentage of revenue?
Answer
Net profit margin
What insurance ratio is (incurred losses plus expenses) divided by earned premiums?
Answer
Combined ratio
What bank ratio is (interest income minus interest expense) divided by average earning assets?
Answer
Net interest margin
What real estate ratio is net operating income divided by property value?
Answer
Capitalization rate
What financial ratio for banks is total loans divided by total deposits?
Answer
Loan-to-deposit ratio
What ratio is revenue divided by net fixed assets?
Answer
Fixed asset turnover
What bankruptcy prediction model uses nine financial ratios to compute an O-score?
Answer
Ohlson O-score
What ratio is accounts payable divided by cost of goods sold times 365?
Answer
Days payable outstanding
What ratio is accounts receivable divided by total credit sales times 365?
Answer
Days sales outstanding
What ratio is EBIT divided by capital employed?
Answer
Return on capital employed
What ratio is earnings per share divided by dividend per share?
Answer
Dividend cover
What ratio is net income divided by weighted average shares outstanding?
Answer
Earnings per share
What ratio is market price per share divided by book value per share?
Answer
Price-to-book ratio
What financial ratio is operating income divided by revenue?
Answer
Operating margin
What Basel III ratio is calculated as high-quality liquid assets divided by total net cash outflows over 30 days?
Answer
Liquidity coverage ratio
What Basel III ratio is calculated as available stable funding divided by required stable funding?
Answer
Net stable funding ratio
What financial ratio for banks is calculated as (Tier 1 capital plus Tier 2 capital) divided by risk-weighted assets?
Answer
Capital adequacy ratio
What financial ratio is calculated as enterprise value divided by EBITDA?
Answer
EV/EBITDA ratio
What financial ratio is calculated as net operating profit after tax divided by invested capital?
Answer
Return on invested capital
What financial ratio is calculated as gross profit divided by revenue?
Answer
Gross profit margin
What ratio indicates the percentage of net income paid out as dividends?
Answer
Dividend payout ratio
What ratio compares net operating income to total debt service?
Answer
Debt service coverage ratio
Which composite financial ratio uses five components to predict bankruptcy?
Answer
Altman Z-score
Which ratio compares a company's market capitalization to its annual revenue?
Answer
Price-to-sales ratio
Which ratio measures a company's ability to cover interest payments?
Answer
Interest coverage ratio
What ratio is total liabilities divided by total assets?
Answer
Debt ratio
Which ratio is calculated as cost of goods sold divided by average inventory?
Answer
Inventory turnover ratio
What ratio is calculated as annual dividends per share divided by price per share?
Answer
Dividend yield
What ratio compares total debt to total equity?
Answer
Debt-to-equity ratio
Which ratio measures how effectively a company uses its assets to generate sales?
Answer
Asset turnover ratio
Which ratio is also known as the acid-test ratio?
Answer
Quick ratio
Which ratio compares a company's share price to its earnings per share?
Answer
Price-to-earnings ratio
What financial ratio is calculated as net income divided by shareholders' equity?
Answer
Return on equity
Financial Ratios trivia — quick answers
What are good Financial Ratios trivia questions?
Good questions ask players to identify a ratio from its formula, explain what it measures, or connect it to a practical use. Examples include interest coverage, earnings yield, Common Equity Tier 1, sustainable growth, and the ratios used in the Altman Z-score.
How hard is Financial Ratios trivia?
Financial Ratios trivia is generally intermediate to advanced. Players need familiarity with accounting terminology and formulas rather than only general business knowledge. A quiz can range from recognizable measures such as price-to-earnings to specialist banking and credit-analysis ratios.
What is the earnings yield?
The earnings yield is the inverse of the price-to-earnings ratio. It is calculated by dividing earnings per share by the market price per share, or by dividing total earnings by market capitalization. Investors may use it to compare an equity's earnings with other investment yields.
What is the interest coverage ratio?
The interest coverage ratio measures how comfortably a company can pay interest on its debt from operating earnings. A common formula is EBITDA divided by interest expense, although analysts may use EBIT instead. Higher coverage generally indicates a stronger ability to meet interest obligations.
What is the sustainable growth rate?
The sustainable growth rate estimates how quickly a company can grow without issuing new equity, assuming operating conditions remain broadly consistent. It is commonly calculated as return on equity multiplied by the retention ratio, where the retention ratio is the share of earnings kept in the business.