When a manager has all the financial information (costs, revenues, assets, liabilities), it is then upon them to determine the financial health of the company. This is done through the following actions:

Multiple Choice

• Look at comparative results from other like companies (ratios, margins, costs, etc)

• Calculate ratios using the company's financial statements over a period of time or relating to a specific time period to identify any significant changes.

• Perform a vertical and/or horizontal analysis to identify any trends that might appear concerning.

• All of the above.