How do activity, debt, and performance ratios evaluate a firm?

"Activity ratios measure how well a firm uses its assets. Debt ratios measure the degree and effect of a firm’s use of borrowed funds (debt) to finance its operations. The debt-to-equity ratio is the ratio of total liabilities to owners’ equity; measures the relationship between the amount of debt financing (borrowing) and the amount of equity financing (owner’s funds). Depreciation is the allocation of an asset’s original cost to the years in which it is expected to produce revenues. Earnings per share (EPS) is the ratio of net profit to the number of shares of common stock outstanding; measures the number of dollars earned by each share of stock."