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Ratio Analysis Information

Who uses financial ratio analysis information?
How can you determine if an organization will be unable to pay its bills?
How can you determine if an organization is using too much debt?

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Who uses financial ratio analysis information?

In financial analysis, we need qualitative information and try to read between the numbers. Ratio analysis can also help us to check whether a business is doing better this year than it was last year; and it can tell us if our business is doing better or worse than other businesses doing and selling the same things. Many different users have need for accounting ...

Solution Summary

This solution answers three questions on ratio analysis, addressing the users, debt usage and inability to pay debt.

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