Week 6 Discussion 303

Respond to the following:Analysts use these ratios in three primary categories to analyze financial statements:Liquidity Ratios.Activity Ratios.Profitability Ratios.Financial analysts tend to use one or two of these categories to analyze a company’s financial position.Imagine that you are a financial analyst:Select at least one ratio from each category.Describe what these ratios reveal about a company’s financial health.Explain how you could use the ratio information to determine ways to improve a company’s financial health.Explain which external user might be most interested in the ratio information and how they might use the information to make decisions