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Financial Ratios

The course is Corporate Finance

The CFO wants a discussion on what the company can do to improve its financial ratios. A colleague of yours has some ideas, but you consider them somewhat radical. THE CFO likes debate and encourages each of you to outline your ideas of what the company can do.

Analysis of ratios are attached.

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Ratio analysis is a tool used to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous year numbers, other companies, the industry, and the economy. The purpose is to assess the performance of the company in relation to other entities.

The most important things the company can do to improve its financial ratios is to minimize risk. Developing a framework to gauge and improve risk management systems is an important task and in response to the cross-industry need for such a framework, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released a ...

Solution Summary

Discusses ratio analysis and how a company can improve its financial ratios.