ACC 557 DQ 2 Financial Analysis

" Please respond to the following:

Determine three key ratios that should be used when evaluating the financial performance of a company, indicating what information this will reveal to an analyst and the impact to decisions made about the company.

Given that financial analysis is reactive based on events that have already occurred, suggest how financial analysis may obtain information to be proactive to the decision-making process. Provide support for your rationale.

Answer:

Determine three key ratios that should be used when evaluating the financial performance of a company, indicating what information this will reveal to an analyst and the impact to decisions made about the company.

Liquidity measures the ability of the business to meet financial...