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Strident Marks: What are the main financal ratios that measure business stability?

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First, you will discuss key elements with top executives. How will investors assess the stability of Strident Marks? What are the key financial ratios that measure the stability of an organization? Define stability.

Next, individually, calculate these ratios, downloading the data here Phase 2 IPS 1

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The 360 word solution shows the computation of the ratios together with adequate narrative for understanding.

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Stability represents a company's financial ability to be consistent and free from changes, variations and crisis so that investors can count on it. Investors will asses the stability of Strident Marks by solvency ratios and the company's ability to repay its debt. They will also compare these ratios with the other firms in the industry and choose the one with the less risk. These ratios include debt-to-worth ratio, working capital and net sales to working capital. Debt-to-equity ratio (or leverage ratio) is a measure of how dependent a company is on debt financing as compared to owner's equity. It ...

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