Knowing that there are over 20 different ratios that can be used to monitor and assess the financial health of a company, he wants to know which 5 ratios you would start with, why, what they mean, and to whom.
Reply to him in an e-mail of 500–600 words that includes the following:
Which 5 ratios do you feel are the best monitors of the health of a company, and why?
For each of the 5 ratios you chose, in layman’s terms:
Explain the meaning of each ratio. (What information does it provide?)
Do companies want the ratio to be a higher or a lower figure? Why?
Which stakeholder(s) will be more interested in the ratios? Why?
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