Appendix A Students must compute the following ratios using the annual reports for their firm and its peer at a minimum. You may use additional ratios as you see fit. If you are looking at a certain industry it is helpful to incorporate industry specific ratios into your analysis. PROFITABILITY Return on Equity Return on Assets Gross Profit Margin LIQUIDITY Current Ratio Quick Ratio SOLVENCY Debt-to-Equity Ratio (or Liabilities-to-Equity Ratio) MARKET RATIOS Price-to-Earnings Ratio