There are four groups of financial ratios; liquidity, leverage, activity, and profitability. Financial analysis is conducted by four types of analysts: management, equity investors, long-term...

There are four groups of financial ratios; liquidity, leverage, activity, and profitability. Financial analysis is conducted by four types of analysts: management, equity investors, long-term creditors and short-term creditors. You are required to (a) explain each type of ratio, (b) explain the emphasis of each type of analyst, (c) state if the same basic approach to financial analysis should be taken by each group of analysts.