Explore BrainMass

Explore BrainMass

    Four ratios helpful in assessing the financials

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Which four ratios do you think would be helpful in assessing the financial strength of a company in the automotive financial industry.

    © BrainMass Inc. brainmass.com December 24, 2021, 8:38 pm ad1c9bdddf
    https://brainmass.com/business/finance/four-ratios-helpful-assessing-financials-295626

    Solution Preview

    I will also use the Debt equity ratio which is Debt/Equity. This measures the long term solvency of the organization. Lower debt equity ratio indicates lower financial risk.
    Another important ratio is Net profit margin which indicates the overall efficiency of the organization. This ratio is measured to evaluate the efficiency of company in terms of ...

    Solution Summary

    The response guides about the four ratios useful for assessing the financial strength.

    $2.49

    ADVERTISEMENT