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    Four ratios helpful in assessing the financials

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

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    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.