Market ratios are used primarily to evaluate which aspect of a public firm?

Market ratios are essential tools used primarily to assess a public firm's current share price and the market's perception of its value. These ratios provide insights into how the market views a company’s profitability, growth potential, and risk relative to its share price. Common market ratios include the price-to-earnings (P/E) ratio, which compares the company's current share price to its earnings per share, and the market-to-book ratio, which compares the market value of the company's equity to its book value.

By focusing on the current share price, these ratios help investors determine if the stock is undervalued or overvalued according to the company’s financial performance and future growth expectations. This evaluation is crucial for making informed investment decisions. While total revenue, asset management, and debt equity balance are significant aspects of a company's financial health, they do not directly capture how the market assigns value to the firm's shares compared to its actual financial metrics. Hence, when it comes to evaluating a public firm's standing in the market, the current share price is the central focus of market ratios.