Question
Financial ratios are used to measure a company's financial performance in several different areas. The ratios are typically categorized into the following categories: Ratios used
Financial ratios are used to measure a company's financial performance in several different areas. The ratios are typically categorized into the following categories: Ratios used to measure a company's ability to pay current liabilities Ratios used to measure a company's ability to sell inventory and collect receivables Ratios used to measure a company's ability to pay long-term debt Ratios used to measure a company's profitability Ratios used to analyze a stock investment Class - As a manager, which of these categories would be most beneficial to you in making financial decisions? Why? Given the information provided by these ratio categories, what type of everyday business decisions could you make using the information if it was your company? Provide an example of for each.
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