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June 4, 2024

The main categories of ratios are solvency, liquidity and profitability.

The main categories of ratios are solvency, liquidity and profitability.

Based of your explanation of each,Do you believe each category differs from one organization to another? For example, I work in the telecommunications industry, which is more long-term orientated.So when a financial analyst looks at them, they may see a lower solvency ratio and a higher liquidity ratio. Could this affect needed funding or possible investments when looking at the industry?

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