Liquidity ratios and leverage ratios

Reference no: EM132757762

1. Liquidity Ratios (Current and Quick): measures ability to meet cash needs.

2. Leverage Ratios (Debt to Equity, Debt Ratio): measures extent of financing with debt relative to equity and the ability to cover interest and other fixed charges.

3. Profitability Ratios (Gross Profit Margin, Net Profit Margin): measures overall performance of organization and efficiency in measuring assets, liabilities and equity.

Reference no: EM132757762

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