Financial Statement Analysis Is Considered Useful for Students in Handling

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The Answer is For a student, the role and use of financial information is an important aspect of analyzing a case study. After all, financial data represents the factual results of a company's strategy and structure. Although analyzing financial statements can be quite complex, a general idea of a company's financial position can be determined through the use of ratio analysis. These ratios can be compared with the industry average, aggregate economy and the company's past performance. There are important ratios such as debt to equity and receivables turnover days or payables days. In their simplest form, these ratios are used to find out how to utilize assets, capital and liabilities effectively. However, it should be noted that deviation from the average is not necessarily bad-sometimes it simply warrants further investigation.

Financial Statement Analysis Is Considered Useful for Students in Handling

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