Your company is considering buying back some of its stock. You are assigned the task of correctly assessing the value of the company so that the company can make a rational decision.

Select 4 ratios listed below that you believe would provide the best insight into the condition of the company and provide a rationale as to why you feel that they would be most relevant.

Current Ratio = Current assets/current liabilities

Acid-test Ratio = Cash+accounts recieveable/current liabilities

Return on equity = Net Income/total common equity

Return on Assets = Net income/total assets

Profit Margin = net income after taxes/sales

Operating return on assets = operating profits/total assets

Accounts Receivable Turnover = annual credit sales/accounts recievable

Days in Inventory = inventory/daily cost of goods sold

Inventory Turnover = cost of goods sold/inventory

Total Asset Turnover = sales/total assets

Fixed Asset Turnover = sales/net fixed assets

Debt-to-Ratio = total debt/total assets

Debt-to-Asset = liability(debt)/assets

Debt-to-Equity = total liabilities(debt)/shareholders equity