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The ratios that have been computed in this course that are specific to non-financial firms are, respectively: Gross Margin Pricing Power Operating Margin Ratio of

The ratios that have been computed in this course that are specific to non-financial firms are, respectively:

  1. Gross Margin
  2. Pricing Power
  3. Operating Margin
  4. Ratio of Change in Revenue to Change in Fixed Assets
  5. Juxtaposition of Change in Receivables with Change in Payables
  6. Leverage
  7. Interest Coverage
  8. Inventory Turnover

Rank all 8 ratios with respect to the extent that they reveal information about credibility of operations of a non-financial firm (partial credit possible).

Succinctly, with no more than 2 sentences for each rank placement, justify your ranking of the ratio that you rank 1ST, and your ranking of the ratio that you rank 8TH.

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