(a) Indicate whether each of the following ratios is a liquidity (L) ratio, a solvency (S) ratio,...

Question:

(a) Indicate whether each of the following ratios is a liquidity (L) ratio, a (S) ratio, or a profitability (P) ratio.
(b) Indicate whether a higher or lower result is normally desirable.
_____(a) ______(b)
________ ________Acid-test
________ ________Asset turnover
________ ________Collection period
________ ________Debt to total assets
________ ________Gross profit margin
________ ________Interest coverage
________ ________Inventory turnover
________ ________Operating cycle
________ ________Profit margin
________ ________Return on equity
Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...