Financial Ratio

Course Requirement:
Write a paper on a class of financial ratios we have studied in this course. (Select profitability, solvency, or liquidity ratios to discuss in depth.)

Select a Ratio Class (do not write about all three):

  • Profitability
  • Solvency
  • Liquidity
  1. Explain how each of the ratios within that class is calculated and how they are used to analyze financial statements.
  2. Select a recently filed set of financial statements and calculate the ratio for that company. Explain what this ratio tells you about the company.

Sample Solution