Using the Financial Statements of Aspen for 2017 and 2018, Preview the document, compute liquidity, profitability, and activity and leverage ratios. This analysis will contribute towards our understanding of how financial statements are used to make economic decisions while at the same time highlight the limitations of financial statements analysis. Understanding financial statements and how they are used will help us with criticizing.

Questions:

1. What do liquidity, profitability activity and leverage ratios tell us about Aspen (Note: do not present the ratios calculated, just interpret them under these four categories of accounting ratios)

2. What is it that this analysis is not telling us about Aspen?

3. What are the issues that limit the importance of ratio analysis?