What is the importance of ratio analysis? Briefly discuss the importance of the following accounting ratios: (a) Liquidity ratio, (b) Debt-equity ratio, (c) Stock-turnover rate, and (d) Ratio of...

What is the importance of ratio analysis? Briefly discuss the importance of the following accounting ratios: (a) Liquidity ratio, (b) Debt-equity ratio, (c) Stock-turnover rate, and (d) Ratio of debtors to turnover. What procedure would you adopt to study the liquidity of a business firm?