The financial ratios are:
Liquidity Ratio- The firms ability to satisfy the short term obligations. (Gitman, 2007)
Activity ratio- That measure the speed with which various accounts are converted into sales or cash, inflows or outflows. (Gitman, 2007)
Debt ratio- That measures the proportion of total assets financed by the firms creditors. (Gitman, 2007)
Profitability ratio- measures enable the analyst to evaluate the firms profits with respect to a given level of sales a certain level of assets or owners investment. (Gitman, 2007)
Market ratio-related a firms market value as measured by it's current share price to certain accounting values.

The financial ratios are used by debt issuers, business insiders, and stock pickers. Ratios measure many aspects of the business but are not used in isolation from the statements.
Financial ratios are considered an essential part of the financial statement. The results of a ratio give ascend to the question why. This is needed to......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Financial Ratios
Approximate Word Count: 337
Approximate Pages: 2 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Financial Ratios, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!