Which of the following are types of financial ratios?

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Profitability ratios and liquidity ratios are fundamental categories of financial ratios used in financial analysis to assess a company's performance and stability.

Profitability ratios evaluate a company's ability to generate income relative to revenue, operating costs, and other expenses. They provide insights into how well a company can manage its resources to produce profit, which is crucial for stakeholders looking to invest or make financial decisions based on a company’s performance.

Liquidity ratios, on the other hand, assess a company’s ability to meet short-term obligations and demonstrate financial health in the near term. These ratios indicate whether the company has enough liquid assets to cover its liabilities, which is essential for ensuring operational continuity and financial stability.

Together, these ratios provide a comprehensive view of a company's financial condition by highlighting its profitability capabilities and its ability to manage short-term financial pressures, making them key areas of focus in financial analysis. Other listed options either are not standard categories in financial ratio analysis or don't accurately represent common types of ratios used by finance professionals.

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