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Managers use ratio analysis for different purposes. Identify one of the ratios covered in this module. Describe how the ratio is calculated. Classify the ratio’s purpose. Explain how to interpret the results of the ratio.  Example: The current ratio measures a company’s ability to pay short-term obligations with current assets as they become due. The current ratio is a liquidity ratio. This ratio informs investors […]

Managers use ratio analysis for different purposes. Identify one of the ratios covered in this module. Describe how the ratio is calculated. Classify the ratio’s purpose. Explain how to interpret the results of the ratio.  Example: The current ratio measures a company’s ability to pay short-term obligations with current assets as they become due. The current ratio is a liquidity ratio. This ratio informs investors […]

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