Given five categories of financial ratios Sales Growth, Profitability,
Turnover, Liquidity and Capital Structure why are these important in
assessing a comany?

Financial ratios are useful indicators of a firm's performance and
financial situation. Most ratios can be calculated from information
provided by the financial statements. Financial ratios can be used to
analyze trends and to compare the firm's financials to those of other
firms. In some cases, ratio analysis can predict future bankruptcy.

Liquidity ratios provide information about a firm's ability to meet
its short-term financial obligations. They are of particular interest
to those extending short-term credit to the firm. Two frequently-used
liquidity ratios are the current ratio (or working capital ratio) and
the quick ratio.

Asset turnover ratios indicate of how efficiently the firm utilizes
its assets. They sometimes are referred to as efficiency ratios, asset
utilization ratios, or asset management ratios. Two commonly used
asset turnover ratios are receivables turnover and inventory turnover.

Financial leverage ratios provide an indication of the long-term
solvency of the firm. Unlike liquidity ratios that are concerned with
short-term assets and liabilities, financial leverage ratios measure
the extent to which the firm is using long term debt.

Profitability ratios offer several different measures of the success
of the firm at generating profits.  The gross profit margin is a
measure of the gross profit earned on sales. The gross profit margin
considers the firm's cost of goods sold, but does not include other
costs.

Dividend policy ratios provide insight into the dividend policy of the
firm and the prospects for future growth. Two commonly used ratios are
the dividend yield and payout ratio.

Quite honestly, I think the previous answer was great.  This is my
first time referring to questions.  Although, I post on many forums my
economic sentiment.  I will add this though from being an
ex-accounting/premed graduate.  This year the mutual funds will be
more asset focused.  I watch and learn from the best and really
dictator of finance Warren Buffet.  Right now, he is getting into
utilities.  Another thing that will boost shareprice this year is
client base and information.  We are like never before in the info
age.  The last I worked in corporate the strategy for 10 years was to
be at the center of NEWS, GOODS, and INFORMATION.  That was a
multinational fortune 500 company; that have only gotten better.  Keep
in mind the average credit score has dropped 40 points in the last 2
months, and the pension factor 30 note, has been dropped.  These are
strong indicators that liquidity will gain a bit.  The best value
system I have seen in stocks is www.vectorvest.com. Profit margin will
be high in the ranks for this year just about everything is going up. 
However, now I believe they charge.  In comparing stocks and looking
at ratios yourself; it would be www.smartmoney.com. 
profiles.yahoo.com/testifier I make predictions by the quarter.