Analysis Of Financial Statement

Analysis of Financial Statement To go out sentiments pecuniary positions, we need to use ratio analysis. There are four main categories we can use. They are liquidity, activity, profitability, and debt or monetary leverage. The first category Panorama needs to look at is liquidity. This is measured in three different ways. Working capital, on-going ratio and the acid-test ratio. Working capital can be tempered forth as a phoners latest assets negatively charged its flow liabilities. Panoramas working(a) capital would be $833.89. The second is the current ratio in which we would find by taking a companys assets divided by its current liabilities.

In this case Panorama had current assets of $1808.89 and current liabilities of $975.00. A companys current ratio is rattling important in determining its bill poster paying capacities. The troika category, the acid-test ratio, is a good method to determine if a company will be able to incur their short-term financial obligations. Acid-test ratio is...If you want to get a full essay, rewrite it on our website: BestEssayCheap.com

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