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Could someone please help tell me why the following ratios are important? I am having trouble. It only needs to be about a sentence long.

Could someone please help tell me why the following ratios are important? I am having trouble. It only needs to be about a sentence long. Own words or please give citation.

  • Efficiency Ratio: Inventory Turnover
  • Efficiency Ratio: Receivables Turnover
  • Financial Leverage Ratio: Debt/Equity Ratio
  • Liquidity Ratio: Current Ratio
  • Liquidity Ratio: Quick Ratio
  • Liquidity: Working Capital
  • Profitability Ratio: Return on Sales
  • Profitability Ratio: Return on Assets

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