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Describing Current Ratio, Debt ratio, Profit Margin and ROA

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Please describe
Current ratio
Debt ratio
Profit margin
ROA

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Solution Summary

This solution is comprised of a detailed explanation to describe Current Ratio, Debt ratio, Profit Margin and ROA.

Solution Preview

First, you need to understand the concept as discussed below. Then, you can find the number in the balance sheet and income statement to calculate the ratios.

Current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or short term debt within 1 year by using its short-term assets such as cash, inventory, and accounts receivable. The higher the current ratio, the more capable the company is of paying its short-term obligations. A ratio under 1 suggests that the company would ...

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