Page1 / 3

Fin 571 Interpreting Financial Results - INTERPRETING...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Fin 571 Interpreting Financial Results

Fin 571 Interpreting Financial Results - INTERPRETING...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
INTERPRETING FINANCIAL RESULTS Interpreting Financial Results University of Phoenix Corporate Finance FIN/571 Williams Stokes July 15, 2013 Business owners and entrepreneurs use financial ratios as a measuring analysis tool for management performance and benchmarking. Financial ratios include asset turnover, liquidity, calculations in profitability, and financial leverage. Liquidity ratios aid business managers in determining how well their business can satisfy short-term financial responsibilities. Asset turnover ratios show indicators that inform managers how well the business uses assets to create sales in revenue. By calculating the financial leverage of a business, that business will know it’s the long-term responsibility. When calculated, profitability ratios show the individual profits that are earned from a good or service. The main reason businesses create a balance sheet is to find out the business working capital (capital that sustains the business). Working capital also refers to the
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online