Northwest Louisiana Technical Community College Financial Measures Analysis

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Northwest Louisiana Technical Community College

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1) Identify and describe one of the financial measures of profitability, liquidity, efficiency, and leverage.

2) How can an analyst use one of these financial measures to evaluate the financial condition of a corporation?




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Explanation & Answer

Attached.

FINANCIAL ANALYSIS

1

Financial Analysis
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FINANCIAL ANALYSIS

2

The activity where an analyst evaluates financial statements of an organization in order to
determine its financial performance is known as financial analysis (Maynard, 2017). It aids in the
assessment of profitability, liquidity, solvency, and stability of the company. One of the ways an
analyst can conduct an organization’s financial analysis is through ratio analysis, and it is the
most prominent. This paper describes ratio analysis as a financial analysis method and how it can
be used by an analyst to evaluate a corporation’s financial condition.
Ratio Analysis
Ratio analysis involves using financial statements to calculate ratios that aid in drawing
significa...


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