Questions
What is the accounting identity?
What does analyzing companies over time tell a finance manager?
What does restating financial statements into common-size financial statements allow a finance manager or financial analyst to do?
What are liquidity ratios? Give an example of a liquidity ratio and how it helps evaluate a company’s historical performance or future performance from an outsider’s view.
What are solvency ratios? Which ratio would be of most interest to a banker considering a debt loan to a company? Why?
What are asset management ratios? For retail firms, what is one of the key management ratios? Why?
What does the P/E ratio tell an outsider about a company? Why might this ratio not provide very compelling evidence of ...
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