financedis2

300 words apa 2 sources

 

Financial Statements offer a wealth of information about the assets, liabilities, and, with the income and expenses of a firm…
Business uses ‘ratios’ as a key measure of ‘how/what’ is transpiring with regard to the movement of the items within a financial statement…

So…offer one ratio (you’ll want to read the posts from fellow students so as to add a ratio not already used…you job is to offer a ‘new’ [to this discussion] ratio..
And, tell us ‘what’ the ratio tells senior management or investors of the firm, and, ‘why’ this ratio might be improved (meaning ‘which way’…up or down is a ‘better’ direction for the ratio)…

 

Recall that a ratio is just dividing one number into another, and, that the ratio, on it own, may not ‘mean’ too much…
Its the comparison with either previous periods (trend analysis) or perhaps (or in conjunction with) some industry average or other ‘benchmark’ comparison where the value/use of a ratio comes to some significance…

Consider, in your response, the advantage/disadvantage should the ration ‘move’ in either a positive or negative manner to what is generally deemed to be sound economic/fiscal criteria…

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