Managers use a variety of financial ratios to evaluate a company's performance.

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Managers use financial ratios to compare different aspects of a company's financial performance, such as profitability, liquidity, efficiency, and solvency. These ratios are calculated using information from a company's financial statements and provide insights into its strengths, weaknesses, and overall financial health. Examples of commonly used financial ratios include return on equity, current ratio, debt-to-equity ratio, and gross profit margin.

Managers Use a Variety of Financial Ratios to Evaluate a Company's