Choose 4 different financial ratios from your text, course materials, and/or Web resources.
Answer the following questions:
What do they tell you about a firm?
Why is it important for a bank to understand these financial ratios?
Why is it important for an investor to understand these financial ratios?
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Financial Ratios

Referencing this week’s readings and lecture, what are the limitations of financial ratios? Classify your answer into at least the following categories: liquidity ratios, activity ratios, leverage ratios, and profitability ratios