The objective is to utilize ratio analysis to make financial decisions. ? We learned that ratios are
Question:
The objective is to utilize ratio analysis to make financial decisions.
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We learned that ratios are used extensively in financial management to help determine the overall financial health of an organization and its worthiness for investment. Ratios are basically performance indicators that measure management's overall effectives in managing a company. They are a good way to evaluate the operating performance of a firm.
There are many ratios that are available to managers for measuring performance. Many of these ratios have several permutations or slight variation differences. However, they all help to tell a story about the performance of a company. It is important to note that the results are not an end in themselves. They are simply an additional source of information to stimulate questions, encourage further investigation, and generate additional analysis with the ultimate goal of better economic analysis for improved managerial decisions.
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- How would you approach problem 3-37 and what formulas using the Excel template provided below please?
- Please explain (a. To which company would you, as cdi manager for a supplier, approve the extension of short-term trade credit and why?).
- Please explain (b. In which one would you buy stock and why?).
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman