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This post addresses determining financial health.

If you were to get a physical from your Doctor and they only took your blood pressure prior to stating that you are in good health, would you be concerned? If you have noticed in your readings starting in Chapter 3 that there has been explanation of the methods by which you could determine the financial health of a company. Name one and explain how it is computed? Which financial statement(s) does the input come from? Most importantly, what does it tell you about the financial performance or health?

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If you were to get a physical from your Doctor and they only took your blood pressure prior to stating that you are in good health, would you be concerned?

-- Yes, you would be very concerned because it would only show one aspect of your health, and says nothing about the overall condition of your health.

Name one and explain how it is computed?

-- Not sure what's in your textbook, but one of the most common methods ...

Solution Summary

The solution provides an explanation of ways to determine the financial health of a company.

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