The common financial ratios are:
A) Liquidity
B) Activity
C) Profitability
D) Leverage
E) All of the above

Question

Quizplus · Accepted Answer

The common financial ratios include liquidity ratios (measuring a company's ability to meet short-term obligations), activity ratios (measuring a company's efficiency in using its assets), profitability ratios (measuring a company's ability to generate profits), and leverage ratios (measuring a company's debt burden and ability to meet long-term obligations). Therefore, option E, "All of the above", is the correct choice.

The Common Financial Ratios Are