Understanding Financial Performance

This eBook explains how to use key financial ratios to help you make informed management decisions about the financial status of other organizations.

You will learn:

• How key ratios can be derived from readily available financial statements
• How to tell if a business is solvent by using the current ratio and the quick ratio
• How to tell if a business is profitable and to put any profit into perspective by looking at ratios that compare profit as a percentage of sales or assets
• How to look at individual parts of the business to gain insight into their individual profitability and efficiency
• How to assess the investment potential and overall health of an organization

1. Interpreting Key Financial Ratios
2. Purpose and Types of Key Financial Ratios
3. Summary
4. References