Assessment should use comparative company and industry data to determine
- liquidity ratios
- current ratio
- quick ratio
- working capital
- interest coverage
- asset management ratios
- accounts receivable turnover
- average collection ratio
- inventory turnover
- asset turnover
- debt management ratios
- debt to total assets
- debt to stockholders’ equity
- times interest earned
- interest coverage ratio
- profitability ratios
- gross and net profit ratios
- return on sales
- rate of return on total assets
- return on equity, earnings per share
- price/earnings ratio.