Question

.

NEED ANSWER ASAP / ANSWER NEVER USED BEFORE, COMPLETELY NEW ANSWER PLEASE

Financial Statement Analysis, specifically Ratio Analysis is often performed by managers, investors, and creditors. What is the primary goal of each of these groups when evaluating ratios?

ANSWER THROUGHLY 1-2 pages

COPY AND PASTE NOT ATTACHMENT PLEASE

NEEDS TO BE AN ORIGINAL SOURCE ANSWER NEVER USED BEFORE

*****NEEDS TO BE A ORIGINAL SOURCE****

Answer 1

The accentuation of the different kinds of investigators is in no way, shape or form uniform nor should it be. Management is keen on a wide range of proportions for two reasons. To begin with, the proportions call attention to shortcomings that ought to be reinforced; second, management perceives that different gatherings are keen on every one of the proportions and that money-related appearances must be kept up if the firm is to be respected exceptionally by creditors and equity investors. Equity investors are intrigued essentially in productivity, however, they look at different proportions to get data on the hazard of equity responsibilities. Long-term creditors are increasingly keen on the debt ratio, TIE, and fixed-charge inclusion proportions, just like the profitability ratios. Transient creditors underscore liquidity and look most cautiously at the liquidity proportions