FIN200 Week 2 DQ 1

FIN200 Week 2 DQ 1 - • You are considering investing in a...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: • You are considering investing in a company. Which financial ratios would you find most useful? The significance of all financial ratios is vital in determining which company to invest it. There are, however, certain financial ratios that are more relevant than others. In order to determine which ratios are most important, it is important to investigate the company’s market as a whole. As an example, ratios dealing with inventory and inventory turnover will be more significant in the manufacturing sector. However, all companies have to deal with the management of their cash. As such, liquidity ratios (examples: current ratio, quick ration) will be extremely important to determine and calculate. As eluded above, the most effective way for investor to determine the relative weight of various financial ratios in regards to evaluating the financial health of a corporation is to first...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online