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How can I, do I or should I, perform a financial analysis using financial ratios to...

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Accounting

How can I, do I or should I, perform a financial analysis usingfinancial ratios to evaluate the firm's liquidity, solvency, andprofitability for two sequential years using Amazon as thecompany?

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1 Liquidity Liquidity refers to an enterprises ability to convert its assets to cash and pay off its short term obligations without any significant difficulty Liquidity ratios The higher the ratio the better the companys liquidity position Liquidity ratios Financial ratios to evaluate firms liquidity a Current ratio It measures the ability of the company to repay the current liabilities with current assets Current ratio Current assets Current liabilities Current assets Stock Debtor Cash bank receivables loan advances and other current assets Current liabilities Creditor Shortterm loan bank overdraft outstanding    See Answer
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