Calculate and discuss the importance of the following ratios:
Liquidity Ratios—working capital, current ratio, quick/acid-test ratio, receivable turnover, average day's sales uncollected, inventory turnover, average day's inventory on hand, operating cycle
Profitability Ratios—profit margin, asset turnover, return on assets, debt-to-equity ratio, return on equity
Long-term Solvency Ratios—debt-to-equity ratio, debt to total assets, times interest earned, cash debt coverage
Cash Flow Ratios—cash flow yield, cash flows to sales, cash flows to assets, free cash flow
Market Strength Ratios—Earnings per share, price-earnings per share, payout ratio, book value per share