Profitability Ratios: Return on Assets/ Return on Equity/ Profit Margin Solvency or Liquidity Ratios: Current Ratio /
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Question:
- Profitability Ratios: Return on Assets/ Return on Equity/ Profit Margin
- Solvency or Liquidity Ratios: Current Ratio / Acid-Test Ratio / Debt Ratio / Debt -to Equity Ratio/ Times Interest Earned Ratio
- What do these ratios tell you and how might they influence the budget?
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