week 3 discussion

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

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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.



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