wk3a2 michael smith

Assignment 2: Discussion—Applied Ratio Analysis

Access an overview of your course project.

By the due date assigned, respond to the following in the Discussion Area below:

This module you are using financial analysis tools to evaluate the  financial health of companies. One tool you are learning about is  financial ratios and you can use this summary of financial ratios as a guide. You will be combining your findings from this discussion response into your final course project paper in Module 5.

There are three categories of financial ratios: liquidity, solvency, and profitability.

• Describe what each category tells the user about the financial health of a company.
• Choose three ratios in each category and describe what the ratios  tell the user about the company. How are financial ratios used to  evaluate a company?
• Discuss what the numbers would be compared against for analysis.
• Calculate each ratio for your companies. What do the ratios tell you about each of your companies?

Be sure to cite any sources using APA style. You may use this APA Citation Helper as a guide.