Question: 1. Why is it important to use ratios to analyze financial statements? 2. What do liquidity ratios reveal? What two ratio calculations are considered liquidity

1. Why is it important to use ratios to analyze financial

1. Why is it important to use ratios to analyze financial statements? 2. What do liquidity ratios reveal? What two ratio calculations are considered liquidity ratios? 3. What is the purpose of debt coverage ratios? Name three different ratios that are considered debt coverage ratios. 4. Asset management ratios measure how efficiently managers are using the different types of assets. What does Average Collection Period and Inventory Turnover tell us? 5. What do profitability ratios measure? Name three ratios that fit in this category. Which do you think is most important and why? (each of you may have different answers here) What to Post

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