Ratio analysis comparestheline-item datain a firm's financial statements, which willrevealmanyunderstandings regarding liquidity,profitability, operational efficiency, and solvency. Moreover, ratioana

Ratio analysis comparestheline-item datain a firm's financial statements, which willrevealmanyunderstandings regarding liquidity,profitability, operational efficiency, and solvency. Moreover, ratioanalysis can be used to look at trends for oneor morefirms within the same industryor sector.Ratio analysis compares line-item data.Respond to the following in a minimum of 175 words: List the 3 major categories of ratios and explain how they could be used to help a firm. What are the most important liquidity ratios and why?