FIN 486 Week 2, Discussion Question 1 and 2

Apr 24th, 2015
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FIN 486 Week 2, Discussion Question 1 and 2

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Week 2 DQ 1Why are financial ratios used to assess a company's financial performance? Why are sales reports, profits, debts, or current liability reports insufficient? How have financial ratios been used in your company? Do you think they are an effective assessment of financial performance? If so, why? If not, why?"A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or o

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