Explain how the financial ratio you selected is calculated


Problem: Health Care Accounting

Select 1 of the following financial ratios listed below to use for this discussion:

o Current ratio
o Debt to asset ratio
o Free cash flow ratio
o Price-earnings ratio
o Profit margin ratio
o Return on total assets ratio
o Working capital ratio

Use your selected financial ratio and respond to the following in a minimum of 175 words:

1) Explain how the financial ratio you selected is calculated.

2) Explain why a financial institution or investor would use the financial ratio.

3) Explain what the result of the financial ratio calculation would tell you about the organization's financial status.

4) Give an example of how you would use 1 of the financial ratios in your personal finances or current profession.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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