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Explain how the financial ratio

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Reference no: EM133032181

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

Current ratio

Debt to asset ratio

Free cash flow ratio

Price-earnings ratio

Profit margin ratio

Return on total assets ratio

Working capital ratio

Use your selected financial ratio and respond:

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.

Reference no: EM133032181

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