Problem: There are five categories of financial ratios.
- How much has the company borrowed? leverage ratios
- How liquid is the company? Liquidity ration
- How productively is the company using its assets? Efficiency ratios
- How profitable is the company? Profitability ratios
- How highly is the firm valued by investors? Market ratios
1) Explain at least 2 ratios in each category
2) Calculate the ratios you selected for a publicly traded company
3) Explain the output of the ratios you calculated