Assess the key ratios for profitability, liquidity, and solvency
used by financial analysts to evaluate the...
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Accounting
Assess the key ratios for profitability, liquidity, and solvencyused by financial analysts to evaluate the financial performance ofa company. Next, indicate one (1) ratio from each of the three (3)categories (profitability, liquidity, and solvency) that youbelieve to be most indicative of future performance. Use actualratios from a company of your choice to provide support for yourrationale.
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Ratios Are the indicators of financial performance of a company these are in numbers that tell relationship between two elements Profitability ratios Are calculated and used to measure how much a company is profitable in its existing product or service Examples Gross profit margin Gross profit Sales
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