Question:
There are basically five categories of financial statement analysis that is employed to assess the health of companies related to their financial performance. They are generally classified as liquidity, efficiency, debt, profitability and market-based ratios.
Select 1 of the categories, and discuss the following:
- What does each ratio in the category attempt to measure?
- What individual ratios does it employ? List at least 3.
- Discuss each of the ratios that you have identified.
- How is each calculated?
- What does each measure?
- What is the general rule of thumb associated is ratio?
- How do you know if a ratio is improving or deteriorating?
- And what are some of the weaknesses or limitations of each ratio?
Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.