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Financial ratios are traditionally grouped into five categories: Short-term solvency, or liquidity, ratios Long-term solvency, or financial leverage, ratios Asset management, or turnover, ratios Profitability
Financial ratios are traditionally grouped into five categories: Short-term solvency, or liquidity, ratios Long-term solvency, or financial leverage, ratios Asset management, or turnover, ratios Profitability ratios Market value ratios All these ratios measure different aspects of the business, in this activity, you will be asked how to use the ratios and in what situations what ratios should be evaluated. Directions: In 100-200 words, discuss how do you analyze a company's performance using financial ratios? Which ratios are most important to look at for a creditor? Which ratios are most improtant to look at for a shareholder
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