Wk 1 Discussion – Ratio Analysis [due Thurs] Answer

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Discussion Topic

Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to other students or your faculty member. 

 

Due Thursday 

Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision. Through ratio analysis, users of financial data can analyze various relationships between items reported.  

 

Respond to the following in a minimum of 175 words:

  • Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category. For each of the 3 ratios you selected, describe how it is used in managerial decision-making.

 

Due Monday 

Reply to at least 2 of your classmates or your faculty member. Be constructive and professional.

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The three main categories of ratios are liquidity ratio, profitability ratio, and leverage ratio. Liquidity ratio measures the ability of the firm to pay it current financial obligations

This question is taken from Accounting 543 – Managerial Accounting & Legal Aspects Of Business » Spring 2022 » Discussion