Answered: Profitability Ratios:

Business

Accounting

Profitability Ratios:

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter5: Evaluating Operating And Financial Performance

Section: Chapter Questions

Problem 9EP

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Question

Profitability Ratios:

a. Measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.

b. Measure the ability of the company to survive over a long period of time.

c. Measure the income or operating success of a company for a given period of time.

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