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Valuation ratios. How does the firm s performance or financial position relate to its market value? Profitability ratios. How and how much is the firm
Valuation ratios. How does the firms performance or financial position relate to its market value? Profitability ratios. How and how much is the firm achieving returns on its investments? Solvency ratios. How well is the firm positioned to meet longterm obligations? Liquidity ratios. How well is the firm positioned to meet shortterm obligations? Activity ratios. How efficient are the firms operations and the firms management of assets? Question Assume that, as a credit analyst, you are evaluating your allocated company. Using the MOST appropriate ratios from the annual report, evaluate whether to provide longterm debt to this company. Use at least ratios FOR JB HIFI: WHich ones hsould i use: debt to asset, debt to capital, debt to equity, financial leverage, interest coverage, fixed charge coverage
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