What does each ratio in the category attempt to measure?, assignment help

What does each ratio in the category attempt to measure?, assignment help

Primary Task Response: Within the Discussion Board area, write 250–300 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions with your classmates. Be substantive and clear, and use examples to reinforce your ideas.

There are basically 5 categories of financial statement analysis that is employed to assess the health of companies related to their financial performance. They are generally classified as liquidity, efficiency, debt, profitability and market-based ratios.

Select 1 of the categories, and discuss the following:

  • What does each ratio in the category attempt to measure?
  • What individual ratios does it employ?
    • List at least 3.
  • Discuss each of the ratios that you have identified.
    • How is each calculated?
    • What does each measure?
    • What is the general rule of thumb associated is ratio?
    • How do you know if a ratio is improving or deteriorating?
    • And what are some of the weaknesses or limitations of each ratio?

Be sure to document your statements with credible sources, in-text citations, and references using proper APA format.

Responses to Other Students: Respond to at least 2 of your fellow classmates with a reply of 100–200 words about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

  • What did you learn from your classmate’s posting?
  • What additional questions do you have after reading the posting?
  • What clarification do you need regarding the posting?
  • What differences or similarities do you see between your posting and other classmates’ postings?

For assistance with your assignment, please use your text, Web resources, and all course materials.