What is the primary purpose of using financial ratios in financial analysis?

A company's return on equity (ROE) has decreased from 15% to 10% over the past year. What might this suggest?

A company has current assets of \$150,000 and current liabilities of \$100,000. What is its current ratio?

A company's current ratio is 1.2, while the industry average is 1.5. What does this indicate about the company's liquidity position?

If a company has total debt of \$200,000 and total equity of \$300,000, what is its debt-to-equity ratio?

A company has net income of \$50,000 and total revenue of \$200,000. What is its profit margin?

A company has a debt-to-equity ratio of 1.2. What does this indicate about the company's financial leverage?

A company has sales of \$500,000 and average inventory of \$100,000. What is its inventory turnover ratio?

Why might the market value of a company's stock differ from its book value?

What is the primary difference between book value and market value?