Description
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 in a minimum of 175 words:
- 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.
Explanation & Answer
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Running Head: MANAGEMENT DISCUSSION
Management Discussion
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MANAGEMENT DISCUSSION
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Management Discussion
Financial ratios are numerical expressions of financial statements that managers use in
decision-making. They demonstrate business financial information for comparison purposes. The
ratios are invaluable tools to managers in measuring business progress against ...
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