Ratio analysis

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Explain what ratio analysis is to your classmates. The following information should be included in your post.

  • What do you find most difficult about ratio analysis?
  • How is understanding ratio analysis beneficial to you as a manager?
  • How is ratio analysis beneficial to you as an investor?
  • What, in your opinion, are the two most important ratio analyses? Why?
  • Who are the users of ratio analysis?
  • What is the importance of ethics as it would be applied to ratio analysis?

Your response to your classmates should include an analysis of their comments regarding the benefits to managers and investors. Also compare their rationale for their choice as the two most important ratio analyses.

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