How do financial ratios impact decision-making for internal and external stakeholders?
Financial Statement Analysis and Decision-Making Financial statement analysis is a crucial tool for both internal and external users to make informed decisions regarding a company’s financial health. Three important ratios commonly used for analysis are the Liquidity Ratio, Profitability Ratio, and Debt-to-Equity Ratio. The Liquidity Ratio assesses a company’s ability to meet short-term obligations. It … Read more