Financial ratios are the principal tool of financial analysis.

Financial ratios are the principal tool of financial analysis. Ratios standardize the financial information of firms so comparisons can be made between firms of varying sizes.Choose two firms in the same sector; locate their current financial information both in terms of current financial statements and stock market prices. With the information, do a paper of 10-15 pages, with the following headings:How liquid are the firmsAre the firm’s managers generating adequate operating profits on the company’s assetsHow are the firms financing their assets?Are the firm’s managers providing a good return on the capital provided by the shareholdersAre the firms’ managers creating shareholder value