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Measures the ability to meet short-term obligations, for example, the Current Ratio.
- Profitability Ratios: Assesses a company's ability to generate profit, for example, Return on Equity.
- Leverage Ratios: Evaluates the degree of financial risk, for example, Debt-to-Equity Ratio.
By comparing these ratios along the time or industry basis, you can come across performance trends as well as those areas that are possible areas for improvement.Measures the ability to meet short-term obligations, for example, the Current Ratio.
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