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There are several groups of ratios most decision makers and analysts use to examine different aspects of a company's performance. Based on the descriptions of
There are several groups of ratios most decision makers and analysts use to examine different aspects of a company's performance. Based on the descriptions of ratios listed, identify the relevant category of ratios. Ratios that help determine whether a company can access its cash and pay its short-term obligations are called liquidity ratios. Ratios that help determine the efficiency with which a company manages its day-to-day tasks and assets are called ratios. profitability market-value or market-based dividend policy profitability asset management or activity debt or financial leverage management Ratios that help assess a company's ability to service the interest and repayment obligations on its long-term debt and the degree to which it uses borrowed versus invested financial capital are called ratios. ratios help measure a company's ability to generate income and profits based on its invested capital. ratios examine the market value of a company's share price, its profits and cash dividends, and the book value of the firm's assets and relate them to other data items to determine how the firm is perceived in the stock market
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