Building Block Financial Ratio: Profitability
Write a paper on one of the four building blocks of financial ratios we have studied in this course. Select one of the categories in Exhibit 13.16 in your text and discuss all ratios in that category.
Explain how each of the ratios within that class is calculated and how they are used to analyze financial statements. Then, select a recently filed set of financial statements and calculate all the ratios in the building block you selected for that company.
Explain what these ratios tell you about the company. In this context, a recent set of financial statements would be those issued in the current or previous year.
Explain how each of the ratios within that class is calculated and how they are used to analyze financial statements.
