Problem:
Describe these four ratios:
1. Profitability ratios
2. Liquidity ratios
3. Debt ratios
4. Market Value ratios
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 these four financial ratios and state what they tell you about a firm and why it's important to understand what these ratios mean to both a bank and an investor. Describe in a 2-3 paragraphs.