How could liquidity ratios be used by investors to determine whether or not to invest in a company?

Ashford 6: – Week 5 – Discussion

Ratios

Ratios provide the users of financial statements with a great deal of information about the entity.  Do ratios tell the whole story?  How could liquidity ratios be used by investors to determine whether or not to invest in a company?

Guided Response:
Let at least two of your peers know how debt service ratios can be used by a lender in determining whether or not to lend money to a company.

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