attention catherine owens

Last week you learned about the individual accounts on the financial statements. This week you are learning how financial ratios are an important tool used to analyze a company’s performance or to compare it with the performance of competitors.

Using the company you chose last week (or another one), please discuss the following categories of financial health using 2 ratios in each:

LIQUIDITY

CAPITAL STRUCTURE

EARNINGS

What did those ratios tell you (what do they measure)?

Can you tell if the ratio is good or bad (what else might you need to look at or compare it to)?