Discussion Topic – Ratio Analysis
Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision.
Through ratio analysis, users of financial data can analyze various relationships between items reported.
Respond to the following :
1)Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category. For each of the 3 ratios you selected, describe how it is used in managerial decision-making.
2). Explain the benefit of profitability
3). why is liquidity important in accounting.
