Asked by gloria

I am suppose to choose at least five ratios(at least one ratio from each of the five categories and calculate each of the chosen ratios over the past three years using the financial data of Berry's Bug Blasters virtual organization, but it is so confusing I am not sure what to do
Answered by Ms. Sue
I'm not sure I can help you. But let's start with the five categories. What are they?

This site will help you understand ratios.

http://www.purplemath.com/modules/ratio.htm
Answered by gloria
Leverage
Liquidity
Profitability
operating
and Solvency
Answered by Ms. Sue
One of the measures of leverage is the ratio of debt to equity. This site explains and gives an example.

http://www.investopedia.com/terms/l/leverageratio.asp

Liquidity ratio shows the ability to pay off the company's short-term debts.

http://www.investopedia.com/terms/l/liquidityratios.asp

These sites should get you started.

If you need help with the others, Google profitability ratio, operating ratio, and solvency ratio.

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