Explain liquidity risk. What is the purpose of the current ratio? Calculate and interpret this ratio for your company’s two most recent years.
Ratio Analysis 1. Profitability a. Return on assets is an important ratio used to analyze and compare profitability. What are the two major components of the return on assets? Define and explain these components. Calculate and interpret these two components and show that their product equals overall ROA? b. Which component of ROA seems like […]