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Ratio Analysis: Analyzing Financial Statements Chapter 14 describes a number of financial ratios used in business to evaluate a firms performance. Profitability Ratios Asset Utilization

Ratio Analysis: Analyzing Financial Statements

Chapter 14 describes a number of financial ratios used in business to evaluate a firms performance.

Profitability Ratios

Asset Utilization Ratios

Liquidity Ratios

Debt Utilization Ratios

Discussion Question: What would you consider to be the most important ratios to run a small and large business, and why would they be different?

Review my company's financial statements (found at crosstowncivic.mb.ca) and apply some of the ratios. Do you notice any trends or things worth pointing out? What financial ratios might not apply for a financial company but would apply for others?

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