Transcription of Chapter Financial Analysis 18 - acornlive.com
{{id}} {{{paragraph}}}
Example: tourism industry
Chapter Financial Analysis 18 - acornlive.com
Financial Analysis Chapter 18 1 Financial Analysis The objective of Financial statements is to provide information to all the users of these accounts to help them in their decision-making. Note that most users will only have access to published Financial statements. Interpretation and Analysis of Financial statements involves identifying the users of the accounts, examining the information, analysing and reporting in a format which will give information for economic decision making. Types of users Investors look at the risk of their investment, profitability and future growth. Managers / employees have access to more information and will want to know the stability of the company and profitability.
6 2 Quick ratio or acid test Quick ratio = Current assets less inventories (times) Current liabilities This ratio measures the immediate solvency of a business as it removes the inventories out of the
Loading..
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: