Financial Analysis: Using Ratios


Learning Objectives

By the end of this chapter, you should be able to:

•  Compute analytical ratios from the data contained in a company’s financial statements.

•  Assess the financial condition of a business.

•  Identify key areas for management focus to protect or improve business performance.


Financial analysis refines the understanding of financial statements, taking on a scientific, structured focus that facilitates the interpretation of results. The use of both traditional and nontraditional ratio analysis shows you what other analysts see. Your growing ability to analyze problems will ...

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