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What does each ratio in the category attempt to measure

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Reference no: EM131181472

Finanical Statements

There are basically 5 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 debt and discuss the following:

• What does each ratio in the category attempt to measure?

• What individual ratios does it employ?

o List at least 3.

• Discuss each of the ratios that you have identified.

o How is each calculated?
o What does each measure?
o What is the general rule of thumb associated is ratio?
o How do you know if a ratio is improving or deteriorating?
o And what are some of the weaknesses or limitations of each ratio?

Reference no: EM131181472

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