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Unformatted text preview: );> A110w5comparisons of how things like gross profit rate have changed over time • • • Ratio Analysis »-Ratio analysis compares items in the financials (and certain external items)to each other to look for relationships ::;.Three main categories of ratios: I. Profitahility: measures the overall success of a company 2. Uquidily: measures the ability to meet currently maturing debts 3. Solvency: measures the ability to meet long-term obi igations 4 ChoF>IJ ( l • • L1 dJbt-l fiN q ,000 •...
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This note was uploaded on 09/01/2011 for the course ACCT 284 taught by Professor Clem during the Fall '08 term at Iowa State.
- Fall '08