Calculation of Liquidity and Profitability Ratios
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How do I calculate the liquidity and profitability ratios? I have no idea where to begin with the balance sheets for my company or how to do the trend analysis. Please help me get started.
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The solution calculates liquidity and profitability ratios.
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A liquidity ratio is the current ratio of a company which basically tells you to what point a company can pay short-term obligations. It is calculated by taking the current assets and dividing it by the current liabilities (current assets/current liabilities). ...
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