alleryStart learning →How many main types of financial ratios are named?
AFour types
BTwo types
CSix types
DTen types
Answer & Solution
Correct answer: A. Four types
1. Ratios are grouped into a small number of families.
2. Ratio analysis examines several aspects of financial health.
3. There are four main types of ratios.
4. They are liquidity, solvency, efficiency and profitability.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 6 'Measures of Financial Health'_
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