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ratio analysis is an important part of financial statement analysis. There are three categories of ratios - Liquidity, Profitability and Solvency ratios. We are quite

ratio analysis is an important part of financial statement analysis. There are three categories of ratios - Liquidity, Profitability and Solvency ratios. We are quite familiar with the Liquidity and Profitability ratios. What are Solvency ratios? Can you name one or two Solvency ratios? Why should we examine all three categories when analyzing companies?

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