Choose 3 commonly calculated ratios to analyze the financial health of a company, which would you choose to analyze? Why were these ratios chosen?

  1. Choose 3 commonly calculated ratios to analyze the financial health of a company, which would you choose to analyze? Why were these ratios chosen?
  2. How might different stakeholders view the importance of different ratios? Discuss from the perspectives of a stockholder, a vendor, and an employee.
  3. Why are sales reports, profits, debts, and current liability reports insufficient?
  4. Why are financial ratios used to assess a company’s financial performance?