Chapter12- Financial Statement Analysis

Chapter12- Financial Statement Analysis - BUSI 1004...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
1 BUSI 1004 INTRODUCTION TO FINANCIAL  ACCOUNTING Chapter 12- Financial Statement Analysis
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Objective Compute and use various ratios to assess liquidity, solvency, profitability and asset management.
Image of page 2
Agenda Introduction Ratios analysis Liquidity Solvency Profitability Asset Management Limitations of ratio analysis 3
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Shareholders Financial Statement Analysis- Introduction Creditors Management Will I be paid? How good is our investment ? How are we performing? Objective = enable a user to make predictions about the firm that will assist his/her decision making
Image of page 4
Ratios analysis Evaluate the firm’s financial strength: Liquidity : nearness to cash, ability of the firm to pay current debt Solvency : ability of the firm to pay both current and long-term debt Evaluate the management performance Profitability : evaluation of managers’ ability in generating returns to capital providers Asset management : how well are the firm’s assets managed
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern