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What tools are used for financial statement analysis?

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What tools can be used for financial statement analysis? What do these tools tell you about financial performance? What kinds of business decisions can be made using these tools?

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Solution Summary

This solution describes financial tools in 189 words. Four examples of possible decisions are provided in an attached Word document, with calculations, for an additional 326 words.

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See the attached file for examples.

The tools that can be used for financial statement analysis are financial ratios, horizontal, and vertical analysis.

Financial ratios are designed to help one evaluate a financial statement (the financial performance of a company). For example, they ...

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