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Types of ratios.

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Discuss the various types of ratios and their uses; choose one ratio and explain why it is valuable for financial analysis.

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The solution discusses various types of ratios and their value to financial analysis.

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There are a number of different ratios involved in financial analysis. Current ratio is determined by dividing current assets by current liabilities. Quick ratio is determined by dividing quick assets by current liabilities. Quick assets in that equation are found by subtracting inventories from current ...

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