Explain what each of the following classes of ratios measures and give an example of each: (a)

Question:

Explain what each of the following classes of ratios measures and give an example of each:
(a) Liquidity ratios,
(b) ratios, and
(c) Profitability ratios.
Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...