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Profitability, Liquidity and Solvency ratios

Describe each type of ratio category: liquidity, solvency, and profitability. Also, choose one ratio from each category and provide an example and describe what each is useful for.

Solution Summary

The solution gives explanations and examples for the different categories of ratios.

The following ratios are described:
- Liquidity ratios.
- Profitability ratios.
- Solvency

Examples are given for each category.