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liquidity ratio - correct answer ✔is a measure of not only how much cash you have but also how easily
you can convert short-term assets into cash.
activity ratio - correct answer ✔the firm's operational efficiency and profitability.
activity ratio - correct answer ✔efficiency ratio
leverage ratio - correct answer ✔financing ratios or solvency ratios
leverage ratio - correct answer ✔how the firm is financed.
profitability ratio - correct answer ✔based on either sales or asset investment
market ratios - correct answer ✔used to evaluate the current share price of a public firm's stock.
liquidity ratio - correct answer ✔What type of ratio is used to assess a firm's ability to meet short-term
obligations without raising external capital?
Because different types of ratios are needed to get information about different parts of a firm - correct
answer ✔Why are several different types of ratios used to analyze a firm?
What proportions of equity and debt a firm uses to finance its assets - correct answer ✔What do
leverage ratios describe?