whats the 5 ratios to evaluate a subsidiary company's profitability, liquidity and efficiency?

Question

What's the limitation of the analysis

Answer 1

The acid test ratio or Return on Assets, ROA can evaluate profitability. Return on Investment ROI is a better ratio for profitablility.
Liquidity can be evaluated using Current Ratio and Quick Ratio.
Efficiency or I say activity can be evaluated using Asset turn over ratio, Accounts receivable trunover ratio and Average collection period etc;.
That is five.

Answer 2

To mesure the profitability you can use net profit or gross profit ratio.

To measure liquidity use acid test ratio or current asset ratio.

In case of the efficiency - need to knoe efficiency of what ? Assets or business as a whole ?

To measure asset efficiency you can divide total fixed asset by the sales and that tells you how much your asset is contributing towards sale. As a whole business you can use net profit ratio.