Week 6 Discussion 303

Respond to the following:
Analysts use these ratios in three primary categories to analyze financial statements:

Liquidity Ratios.
Activity Ratios.
Profitability Ratios.

Financial analysts tend to use one or two of these categories to analyze a company’s financial position.
Imagine that you are a financial analyst:

Select at least one ratio from each category.
Describe what these ratios reveal about a company’s financial health.
Explain how you could use the ratio information to determine ways to improve a company’s financial health.
Explain which external user might be most interested in the ratio information and how they might use the information to make decisions

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