The process of communicating information that is relevant to investors, creditors, and others in making investment, credit, and similar decisions. The portion of total assets provided by stockholders' equity, computed as stockholders' equity divided by total assets. Refers to how productive a company is in using its assets. It is usually measured relative to how much revenue is generated for a certain level of assets. 1. Comparative Statement 2. Financial Reporting The application of analytical tools to general- purpose financial statements and related data for making business decisions. 3. Liquidity 4. Vertical Analysis 5. Financial Statement Analysis Refers to the availability of resources to meet short-term cash requirements. 6. Efficiency 7. Solvency Refers to a company's long-run financial viability and its ability to cover long-term obligations. 8. Equity Ratio 9. Profitability Comparative financial statements in which each amount is expressed as a percent of a base amount 10. Common-size Statements 9. Profitability Comparative financial statements in which each amount is expressed as a percent of a base amount 10. Common-size Statements A financial statement with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in dollar amounts and percents. A tool to evaluate each financial statement item or group of items in terms of a base amount. Refers to a company's ability to generate an adequate return on invested capital