ratio analysis
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Part I - Which ratios do you think would be helpful in assessing the financial strength of your company? why?
Part II - Why is it important to make comparisons using ratio analysis?
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The expert determines why it is important to make comparisons using ratio analysis.
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Part I - Which ratios do you think would be helpful in assessing the financial strength of your company? Why?
In my opinion solvency ratios would be especially helpful in assessing the financial strength of an organization. Because they help us to assess liquidity (our company's ability to pay its short-term obligations) and flexibility (its ability to adapt to changes in operating conditions). One example of solvency ratios is the current ratio. This ratio measures liquidity and is computed by dividing total current assets by total current liabilities. Assets generating cash ...
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- BSc, Dokuz Eylul University
- MBA, Texas A&M University-Kingsville
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