Category of financial ratios


Problem: For each category of financial ratios, give some examples of who would be likely to examine these ratios and why.

Category

1. Liquidity Analysis ie-current Ratio, Quick Ratio, Net working capital

2. Profitability Analysis Ratios ie- Return on Assets,Return on equity, EPS, Profit Margin

3. Activity Analysis Ratios ie-Asset turnover ratio, inventory turnover

4. Capital Structure Ratios ie- Debt to equity, interest coverage ratio

5. Capital Market Analysis Ratios ie- PE ratio, Market to book, dividend Yield

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