Which of the following are considered in the ratio analysis of a firm?
I. profitability
II. market share
III. liquidity
IV. leverage
A) I and II only
B) I, III and IV only
C) II and IV only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

Ratio analysis of a firm typically considers profitability, liquidity, and leverage but not market share. Market share is more related to the firm's position in the industry rather than its financial health or performance, which is what ratio analysis focuses on.

Which of the Following Are Considered in the Ratio Analysis