Financial Statement Analysis Assignment Example | Topics and Well Written Essays - 250 words

Financial Statement Analysis - Assignment Example Apart from the management potential investors or creditors also benefit from analyzing financial statements as this provides them with the necessary information as to whether a company will be able to pay back the money they have invested or loaned with an appropriate return on their investment. There are various types of ratios such as Liquidity, Asset turn over, Leverage, Operating performance / Profitability and Business Ratios. Using these ratios business owners and leaders can benefit greatly as they provide insight as to whether a company has sufficient resources to meet its short term financial liabilities, is the company using its resources in an efficient manner, how much debt it has incurred to date as compared to its net worth, is the company utilizing its resources in an efficient manner so as to generate profits and increase shareholder value and what is the status of its stock price. In short these ratios can assist business owners and leaders in making more accurate and financially beneficial decisions especially when there is a lot at