Problem
Give a very detailed account of a ratio you are measuring. I don't mean just its input values or the formula, but the underlying business situation or factor that it is measuring.
1. Discuss how this ratio should be used in analyzing a firm, and how it plays a role in the broader understanding of the financial condition of the firm. You should also describe its relationship to other, similar ratios.
2. Give some concrete examples using real data. (You can access financial statements through Edgar.)
3. Interpret the significance of your calculations for those concrete examples.
4. Describe how this ratio may be misleading or incorrectly interpreted.