please help explain

LO 3- O o A number, or even a ratio, by itself doesn't tell us much. Need to compare over time or to someone else) Ratio analysis-understand what the following ratios measure and how they are interpreted (is a higher result better or worse?) You will NOT have to calculate (except Gross Profit Rate). Liquidity-short-term ability to pay obligations/meet needs; short-term creditors care like suppliers Working Capital Current Ratio Inventory Turnover Days in Inventory Accounts Receivable Turnover Average Collection Period Solvency-ability of a company to survive over longer period of time; long-term creditors/investors care Debt to Assets Ratio Times Interest Earned Free Cash Flow Profitability-the income or operating success of a company over a given period of time ALL ARE HIGHER THE BETTER! Earnings per Share Price-earnings Ratio Gross Profit Rate Profit Margin Return on Assets (ROA) Asset Turnover Payout ratio Return on Common Stockholders' Equity (ROE) o LO 3- O o A number, or even a ratio, by itself doesn't tell us much. Need to compare over time or to someone else) Ratio analysis-understand what the following ratios measure and how they are interpreted (is a higher result better or worse?) You will NOT have to calculate (except Gross Profit Rate). Liquidity-short-term ability to pay obligations/meet needs; short-term creditors care like suppliers Working Capital Current Ratio Inventory Turnover Days in Inventory Accounts Receivable Turnover Average Collection Period Solvency-ability of a company to survive over longer period of time; long-term creditors/investors care Debt to Assets Ratio Times Interest Earned Free Cash Flow Profitability-the income or operating success of a company over a given period of time ALL ARE HIGHER THE BETTER! Earnings per Share Price-earnings Ratio Gross Profit Rate Profit Margin Return on Assets (ROA) Asset Turnover Payout ratio Return on Common Stockholders' Equity (ROE) o