Asked by Percy Mitchell on Apr 25, 2024

verifed

Verified

For each of the ratios listed below indicate by the appropriate code letter whether it is a liquidity ratio (L) a profitability ratio (P) or a solvency ratio (S). For each of the ratios listed below indicate by the appropriate code letter whether it is a liquidity ratio (L) a profitability ratio (P) or a solvency ratio (S).

Liquidity Ratio

Financial metrics that measure a company's ability to meet its short-term obligations using its most liquid assets.

Profitability Ratio

A class of financial metrics that are used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Solvency Ratio

Financial metrics used to evaluate a company's ability to meet its long-term debt and other obligation by comparing its assets to its liabilities.

  • Acquire knowledge on how to calculate and analyze distinct financial ratios, including those assessing liquidity, solvency, and profitability.
verifed

Verified Answer

JP
Jonathan PinelMay 02, 2024
Final Answer :
1. S
2. P
3. L
4. S
5. L
6. P