Statement of the Assignment:
Please prepare a comprehensive list of financial ratios asintroduced in Chapter 3 of the textbook. Write a brief explanationbelow each financial ratio, e.g. what does the financial ratiomeasures or what the significance of it is.
For example:
Current Ratio = Current Assist / Current Liabilities
Current ratio measures whether our current assets, ifliquidated, are sufficient to pay all of our current liabilities. ACR of 1.5, for example, shows that if we were to liquidate all ofour current assets, we will be able to cover 1.5x our currentliabilities, whereas a CR of 0.5 shows that liquidating our currentassets only covers half of our current liabilities.
