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Select 1 of the following financial ratios listed below to

 

Select 1 of the following financial ratios listed below to use for this discussion:

  • Current ratio
  • Debt to asset ratio
  • Free cash flow ratio
  • Price-earnings ratio
  • Profit margin ratio
  • Return on total assets ratio
  • Working capital ratio

Use your selected financial ratio and respond to the following in a minimum of 175 words:

  • Explain how the financial ratio you selected is calculated.
  • Explain why a financial institution or investor would use the financial ratio.
  • Explain what the result of the financial ratio calculation would tell you about the organization’s financial status.
  • Give an example of how you would use 1 of the financial ratios in your personal finances or current profession.

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