Explain what ratio analysis is.

Explain what ratio analysis is.

Explain what ratio analysis is. Name the four categories of ratios and describe the type of information each group provides the small business owner.
List the 12 key ratios outlined in the text (under each category) and explain the type of information each provides the small business owner. Write the equation/formula for each.
The above assignment should be stated in as many paragraphs as necessary. Font New Roman regular 11-point, single space lines,

just be more specific about the details you write because last time I got bad grade for the last paper you did for the same class. more specific more details. no sources needed, I appreciate you a lot for your hard work! more assignments to come just need qua

Font New Roman regular 11-point, single space lines, one page

Solution Preview

Ratio Analysis

Ratio analysis is defined as an approach of a company gaining more insights through quantitative methods on profitability, operational efficiency, and the company’s liquidity. The information on these factors is compared based on data generated in the financial statement. Ratio analysis indicates the efficiency of operations in the business environments. For example, the ratio analysis is applied in the process of assessing the effectiveness of the business by converting sales into cash and inventories into sales.

(649 words)