Why are financial ratios used? Name five categoriesof ratios, and then list several ratios in each category. Would a bank loan officer, a bond analyst,a stock analyst, and a manager be likely to put thesame emphasis and interpretation on each ratio?

Why are financial ratios used? Name five categoriesof ratios, and then list several ratios in each category. Would a bank loan officer, a bond analyst,a stock analyst, and a manager be likely to put thesame emphasis and interpretation on each ratio?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Why are financial ratios used? Name five categories
of ratios, and then list several ratios in each category. Would a bank loan officer, a bond analyst,
a stock analyst, and a manager be likely to put the
same emphasis and interpretation on each ratio?

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