How and why each of the ratios has changed over the three years

The liquidity ratio measures the strength of the company to attain its short-term responsibilities whereas the solvency ratios weigh the aptitude of the company to achieve long-term debt responsibilities. In various cases, these type of ratios are referred to as leverage ratios and also long-term debt ratios. The valuation ratios measure the assets quantity or the flow that is associated with the ownership of a specific claim. The valuation ratios are also critical when the company is studying equity. Equity ratios are the most critical ratios in the company which, is also known as the activity ratios. The environmental factors such as, water availability, energy consumption, waste and pollution that provides resources for the company may have an impact on the ratio change.