financial analysis

By kimlengvay9, Oct 2010

Subjects: kim vay

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This type of financial analysis express each financial statement component as a percent of sales	comparative analysis
what data do you compare with using comparative analysis	digest data
What are the major areas of ratio analysis	solvency efficiency profitability
The overall ability of the firm to pay its legal debts is the definition of	solvency
How well the manager is using available capital is the definition of	efficiency
bottom line is use to describe what area of the ratio analysis?	profitability
True or False: profitability is an important, but not only, measure of business success	True
this solvency ratio is equal to current assets over current liabilities	current ratio
this solvency ratio is equal to (cash + AR) over current liabilities	acid test ratio
What is the usual range of the current ratio and the acid test ratio respectively	current ratio ≥ 2:1 acid test ratio ≥ 1:1

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