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Present Value What is the present value of a $750 payment made in 3 years when the discount rate is 5 percent?
Vertical Analysis
A method of financial statement analysis in which each line item is listed as a percentage of a base figure from the statement.
Ratio Analysis
An examination of the relationship between two numbers or sets of numbers on financial reports. Analyses of ratios, especially over time, can give a fairly clear picture of how well a company conducts its business.
Statement Analysis
The process of examining financial statements to make business decisions, which often involves assessing profit, liquidity, and solvency among other aspects.
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