Liquidity and Efficiency:
A company paying off its short term obligations from its liquid assets or short term assets available to them is known as liquidity of a company. On the other hand efficiency is the ability to quickly and economically convert an input into output.
Solvency:
Ability of an enterprise to meet its long term obligations or commitments is known as solvency of a company.
Profitability:
Profitability is the proficiency of a business to earn profit in other words overall performance of a company to earn.
Market Prospects:
Market prospects are a company’s future potential performance in the marketplace.
To identify: Match the ratio to building block of financial statement analysis to which it best relates.
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Managerial Accounting (Looseleaf)
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