Solved: Merits of the financial ratios, Accounting Basics

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Merits of the financial ratios

Question: What are the merits of the following financial ratios:

Profitability Ratio
Liquidity Ratio
Debt Ratio
Asset Activity Ratio
Market Values Ratio

What do these financial ratios tell us about a firm?

Why is it important to understand what these ratios mean to both a bank and an investor?

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Accounting Basics: Merits of the financial ratios

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Accounting Basics: Merits of the financial ratios

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