Financial ratios are important to the understanding of the financial health of a company.

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: 
  • 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?