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Describe the three categories of ratios used in ratio analysis. When working on assessing the company...

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Finance

Describe the three categories of ratios used in ratio analysis.When working on assessing the company you chose, which of theseratios do you think is the most important indicator of successfulperformance, why

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Ratios important to analyse a company Liquidity ratio consists of current quick ratio and cash ratio Current ratio is the ratio of the current assets to current liabilities If current ratio is greater than 1 then the company can pay off its short liabilities through its short term assets Quick ratio is the current assets minus inventories to the current liabilities It focuses on liquidity other than    See Answer
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Describe the three categories of ratios used in ratio analysis.When working on assessing the company you chose, which of theseratios do you think is the most important indicator of successfulperformance, why

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