Refer to Sections $4\mathrm{.}3$ and $4\mathrm{.}4$ of Chapter $4.$ The four types of financial ratios are liquidity, debt, efficiency, and profit. It is essential to understand how these ratios impact each other. In Sections $4\mathrm{.}3$ and $4\mathrm{.}4,$ Brealey, Myers, and Marcus $(2023)$ reviewed some differences between the financial ratios. Junaidi and Muksal $(2021)$ demonstrated how debt to equity impacts different ratios. In week two, we reviewed a similar computation that aids in understanding debt and equity: the Weighted Average Cost of Capital $($Brealey et al$.,2023).$

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So$,$ as class members learn new computations or refresh their memory of the four categories of financial ratios, please look for relationships, as disclosed in the study by Junaidi and Muksal.$$

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In week two, we discussed the return on equity and earnings per share, which are profit ratios. In week four, we reviewed the return on assets and price to earnings. So$,$ class members will have reviewed four profit ratios as of the conclusion of week four. What intrigued class members when reading the study by Junaidi and Muksal?