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Last updated 7:50 PM on 4/8/26
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5 Terms

1
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ratio analysis is

another way to analyze financial performance

2
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liquidity ratios

ability to meet the day-to-day cash needs of firm

3
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solvency ratios

ability to repay money loaned if the firm stops doing business

4
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activity ratios

level of activity of the business relative to inventory levels, customer credit payments, and own bill paying

5
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profitability ratios

ability to generate profit