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ACC 291 Week 4 DQ 2
$ 15.00

Some of the common ratios used to analyze financial information are: profits, liquidity, activity, and debt leverage. Depending on the business and the sector it’s in, personally, I’d have to say that liquidity and profits are of paramount importance.

Liquidity - The current ratio is calculated by dividing current assets: cash, receivables and inventory - by current liabilities, all debt obligations due within 12 months. The current ratio and quick ratio gauge a company’s liquidity.

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