Select 1 of the following financial ratios listed below to use for this discussion:
- Current ratio
- Debt to asset ratio
- Free cash flow ratio
- Price-earnings ratio
- Profit margin ratio
- Return on total assets ratio
- Working capital ratio
Use your selected financial ratio and respond to the following in a minimum of 175 words:
- Explain how the financial ratio you selected is calculated.
- Explain why a financial institution or investor would use the financial ratio.
- Explain what the result of the financial ratio calculation would tell you about the organization’s financial status.
- Give an example of how you would use 1 of the financial ratios in your personal finances or current profession.