Financial statements provide critical information to business owners and executives as well as external constituencies, such as banks and governmental entities. These financial statements are often analyzed using ratios. Summarize key ratios used to analyze financial statements, what they tell us, and why we prefer ratios over absolute numbers.

Answer rating: 100% (QA)

Key Ratios Used to Analyze Financial Statements 1 Liquidity Ratios Current Ratio Measures a companys ability to cover shortterm obligations Formula Cu... View the full answer