Financial Statement Analysis (Financial Ratios)

Module 14: Discussion

Financial Ratios

Select one type of creditor or investor from the list below:

• vendor (supplier of goods or products)
• bank providing short-term financing
• bank providing long-term loan (10 years or more)
• bond investor
• investor in common stock

Discuss at least three specific financial ratios that creditors or investors would be most interested in when analyzing financial statements, and why.

Directions:

• Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
• Your initial post should address all components of the question with a 500-word limit.
• Reply to at least two discussion posts with comments that further and advance the discussion topic

ReadingsRequired:

• Chapter 16 in Managerial Accounting
• Ding, K., Peng, X., & Wang, Y. (2019). A machine learning-based peer selection method with financial ratios. Accounting Horizons, 33(3), 75–87.
• Corporate Finance Institute (2015-2021). Analysis of financial statements: Guide to analyizing financial statements for financial analysts.