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Financial ratio analysis is a widely used tool for assessing the "health" of an organization...

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Accounting

Financial ratio analysis is a widely used tool for assessing the "health" of an organization and identifying any specific areas of weakness within the operation that may require management attention. Do a bit of research in our textbook or the internet to select any financial ratio. Show us the formula for the ratio and explain in plain terms what the ratio tells us about the company's performance or operational efficiency. Also be sure to indicate whether it's better for the ratio's calculated result to be a higher or lower value.

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