The Rogers Internet Network provider company uses financial ratios to assess its performance and financial health. The relevant and irrelevant financial ratio used by Roger’s internet service provider. Relevant Financial Ratios: What are the Financial Rati Liquidity Ratios: This ratio includes the current ratio and quick ratio; liquidity ratios are used to measure the company's ability to meet short-term debts with its current assets. When considering Roger’s internet network business, ongoing investment in infrastructure and technology and ensuring sufficient liquidity are essential. Profitability Ratios: Rogers Internet Network Company's goal is to achieve profitability while managing the company's infrastructure and services. These ratios …show more content…
Rogers uses it to compare debt to equity. Rogers likely requires substantial investment in infrastructure; this ratio can indicate its ability to manage debt obligations relative to shareholder equity. Return on Assets (ROA) and Return on Equity (ROE): This ratio evaluates Roger’s ability to make profits from its assets. Return on equity estimates how effectively Rogers shareholders' equity generates profits. Return on assets and return on equity are vital for understanding Roger’s operational efficiency and profitability. Current Ratio: This is used to determine Rogers' short-term liquidity by comparing its current assets to its current liabilities. Rogers may experience short-term obligations; this ratio indicates its ability to meet these debts with its current assets. Growth Ratios: This ratio helps to estimate Rogers' growth potential, including revenue growth rate and earnings growth rate. In a competitive telecommunications industry, the ratios can provide insights into Rogers’ expansion strategy, its market share, and its profitability over time. Debt management ratios: The debt-to-equity ratio and interest coverage ratio are used to manage debt. There is a potential