Financial statements provide critical information to business owners and executives as well as external constituencies, such as banks and governmental entities. These financial statements are often analyzed using ratios. Summarize key ratios she would use to analyze financial statements, what they tell us, and why we prefer ratios over absolute numbers. In addition to the assigned readings, there are three optional videos listed above and any or all of them may help with this assignment.
Three videos for this assignment
Rosenberg, R. (2014, Aug 4). Analyzing business performance. LinkedIn Learning.
Patel, Y. (2017, Nov 8). The four different financial statements. LinkedIn Learning.
Stice, K. & Stice, J. (2015, Feb 2). Running a profitable business: Understanding financial ratios. LinkedIn Learning.
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