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Balance sheet and income statement

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When financial managers are concerned about the ability to pay off debts that will come due in the next year they likely to focus on?

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Describe the four approaches to using financial ratios?

Describe the four approaches to using financial ratios?


What are the key determinants of a financial structure?

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Steps in ratio analysis?

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Equivalent ratios are ratios that represent different numbers but the relationship between the numbers is same.


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This is because the average of the ratios does not take account of the sizes of the numbers in the ratios.


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In financial analysis the analyst compute financial ratios to determine the financial health of an financial institutoin rather than simply studying raw financial data.