Final answer:
Financial ratio analysis involves assessing various measures of a company's financial performance, with market devaluation not being one of them.
Step-by-step explanation:
The correct answer is d. Market devaluation.
Financial ratio analysis is a technique used to evaluate the financial performance of a company. It involves using various ratios to assess different aspects of a company's financial health. The common measures assessed in financial ratio analysis include:
- Profitability: This measure assesses the company's ability to generate profits and includes ratios such as net profit margin, return on assets, and return on equity.
- Short and long-term solvency: This measure assesses the company's ability to meet its financial obligations and includes ratios such as current ratio and debt-to-equity ratio.
- Asset utilization: This measure assesses how efficiently the company utilizes its assets to generate revenue and includes ratios such as inventory turnover and asset turnover.
- Market devaluation: This measure is not commonly assessed in financial ratio analysis. It refers to the decrease in the value of a company's market capitalization and is influenced by factors such as market conditions and investor sentiment.
Therefore, the correct answer is d. Market devaluation is not a common measure assessed in financial ratio analysis.