Explore BrainMass

Explore BrainMass

    Analyze financial statements: Use ratios? Which ratios?

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    You have been given the financial statements and asked to analyze the financial performance of your division. Other managers have suggested you use financial ratios in your analysis. What are financial ratios? Which ratios might you use in your analysis? List them and explain what information they provide. How would you use them to make managerial decisions?

    © BrainMass Inc. brainmass.com March 4, 2021, 9:46 pm ad1c9bdddf
    https://brainmass.com/business/financial-statements/analyze-financial-statements-use-ratios-which-ratios-270199

    Solution Preview

    Financial ratios are designed to help one evaluate a financial statement (the financial performance of a company). For example, they are used to compare a firm's debt to its assets. Such comparison is the ratio analysis.

    The ratios I would use in my analysis would be the liquidity ratios which includes current ratio and quick ratio. Liquidity ratios measure the relationship of a firm's cash and other current assets to its current ...

    Solution Summary

    This solution is comprised of detailed explanation to the following question:

    You have been given the financial statements and asked to analyze the financial performance of your division. Other managers have suggested you use financial ratios in your analysis. What are financial ratios? Which ratios might you use in your analysis? List them and explain what information they provide. How would you use them to make managerial decisions?

    $2.49

    ADVERTISEMENT