Problem
Ratios are simply the relationship of one number to another. We are looking at many ratios in this topic that give us an idea of how profitable, liquid or solvent, a company is. A ratio by itself tells only part of a story. It is important to see a trend as well. Pick two ratios that were discussed and explain what they tell us about the company. Additionally, discuss what a trend of these ratios will tell that a single ratio cannot. Participate in follow-up discussion by discussing your ratios in comparison to those of a classmate.