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Different users of financial ratios

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How do different users of financial ratios (bankers, investors, the company) interpret financial ratios? Which financial ratios are important to each of these users? What are some of the problems associated with using financial ratios?

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This solution response discusses the interpretation of financial ratios by different users (bankers, investors, the company). Additionally, this solution provides four reference sources for further investigation of the topic.

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How do different users of financial ratios (bankers, investors, the company) interpret financial ratios? Which financial ratios are important to each of these users? What are some of the problems associated with using financial ratios?

The purpose of the financial statement financial analysis is to provide relevant information to all the stakeholders of the organization which will help in their decision making. This also helps in comparing the performance of the organization and used in the control of the organization. Different users of financial ratios ...

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