Final answer:
Traditional financial ratio categories include financial leverage ratios, profitability ratios, and turnover ratios. Real options ratios and competition ratios are not standard financial ratio categories.
Step-by-step explanation:
The traditional financial ratio categories are financial leverage ratios, profitability ratios, and turnover ratios. Financial leverage ratios help evaluate the degree to which a company is using borrowed money. Profitability ratios measure a company's ability to generate earnings relative to sales, assets, and equity. Turnover ratios, also known as activity ratios, assess how well a company uses its assets to produce revenue.
Real options ratios and competition ratios are not traditional financial ratio categories. Instead, competition in an industry can be measured through other indicators such as the four-firm concentration ratio or the HHI (Herfindahl-Hirschman Index), yet these do not directly measure the amount of competition, as they only provide a snapshot of market share concentration.