Why is it important for a bank to understand financial ratio

Assignment Help Financial Management

Reference no: EM132426436

Financial ratios are important to the understanding of the financial health of a company. You and your colleagues work for a financial services firm. You are discussing the merits of the various financial ratios. Identify four financial ratios, and state what they tell you about a firm and why it is important to understand what these ratios mean to both a bank and an investor.

Be sure to include your reasoning regarding these issues.

Choose 4 different financial ratios from your text, course materials, and/or Web resources.

Answer the following questions:

Question 1: What do they tell you about a firm?

Question 2: Why is it important for a bank to understand these financial ratios?

Question 3: Why is it important for an investor to understand these financial ratios?

Reference no: EM132426436

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