What are the main objectives of ratio analysis and why is this important to external users of the financial statements, such as investors.
What are the main objectives of comparative analysis? Why is it important for external users of financial statements to perform this type of analysis on financial statements?
As a corporate controller, I often use financial ratios in comparative analysis? What is comparative analysis? Why is it important and how is it useful to managers and internal users of financial statements?
Why are liquidity ratios important in analyzing a company’s financial health? What does it mean if a company cannot meet its financial obligations? How does this affect a company and its shareholders?
If a company shows net income, does that mean they are a” healthy” company financially? Why or why not?
How does ratio and/or comparative analysis assist companies whose profits are tied to a season?