Choose 4 different financial 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 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.

Discussion Board Assignment Guidelines:

• Choose 4 different financial ratios from your text, course materials, and/or Web resources.
• Answer the following questions:
  • What do they tell you about a firm?
  • Why is it important for a bank to understand these financial ratios?
  • Why is it important for an investor to understand these financial ratios?

  Pick 4 different financial ratios:

  Liquidity ratios

  Profitability ratios

  Market ratios

  Solvency ratios

  activity ratios

  efficiency ratios