Explore BrainMass

Explore BrainMass

    interpret financial statements

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

    How are financial ratios and trend analysis used to analyze and interpret financial statements? Which category (profitability, efficiency, liquidity, gearing, or investment) of ratios is most useful for company managers and why?

    Aprox 250 words with reference.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:57 pm ad1c9bdddf
    https://brainmass.com/business/financial-statements/interpret-financial-statements-159467

    Solution Preview

    Financial ratios are key tools in evaluating the financial statements and performance of an organization for a given period. To complete a thorough examination of a company's effectiveness, one needs to look at more than just easily attainable numbers like sales, profits, and total assets.One must be able to read between the lines of your financial statements and make the seemingly inconsequential numbers accessible and comprehensible.

    This massive data overload could seem staggering. However, ratio analysis makes this task very simple. Comparative ratio analysis, ie, comparison of ratios ...

    Solution Summary

    How are financial ratios and trend analysis used to analyze and interpret financial statements?

    $2.19

    ADVERTISEMENT