Financial statement analysis often assess the profitability and risk of an organization.Specific ratios target each of these areas to answer questions such as "How profitable is this company?" or "How risky (liquid) is an investment in this company?"
Required:
a. Discuss three ratios that address how profitable a company might be.
b. Discuss three ratios that address how risky (liquid) a company might be.

Question

Financial statement analysis often assess the profitability and risk of an organization.Specific ratios target each of these areas to answer questions such as "How profitable is this company?" or "How risky (liquid) is an investment in this company?"
Required:
 a.	Discuss three ratios that address how profitable a company might be.
b.	Discuss three ratios that address how risky (liquid) a company might be.

Quizplus · Accepted Answer

The Answer of Financial statement analysis often assess the profitability and risk of an organization.Specific ratios target each of these areas to answer questions such as "How profitable is this company?" or "How risky (liquid) is an investment in this company?"
Required:
 a.	Discuss three ratios that address how profitable a company might be.
b.	Discuss three ratios that address how risky (liquid) a company might be.

Financial Statement Analysis Often Assess the Profitability and Risk of an Organization.Specific