Describe the ratio-what does the ratio measure


Question:

Choose a financial ratio that applies to the balance sheet (e.g.: Current Ratio, Debt to Equity ratio, Inventory Turnover, etc.). Describe the ratio.

• What does the ratio measure?

• Is a large number good or bad?

• How is it trending?

• What does your analysis indicate about the company (what steps might management need to take, how does it impact overall strategy)?

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Finance Basics: Describe the ratio-what does the ratio measure
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