FINANCIAL STATEMENT
ANALYSIS AND
FINANCIAL RATIOS
CHAPTER 13
,LEARNING OBJECTIVES
After completing this chapter, you should be able to:
◦ Describe and explain the different financial ratios
◦ Calculate and interpret the main financial ratios
◦ Explain the use of ratios in analysing the performance of a business
, OBJECTIVES OF FINANCIAL
STATEMENT ANALYSIS
1. To identify the weakness as well as the strengths of a business
2. To enable the business to take the appropriate steps or actions to overcome any weaknes
3. To enable the business to improve its overall financial situation in the future
ANALYSIS AND
FINANCIAL RATIOS
CHAPTER 13
,LEARNING OBJECTIVES
After completing this chapter, you should be able to:
◦ Describe and explain the different financial ratios
◦ Calculate and interpret the main financial ratios
◦ Explain the use of ratios in analysing the performance of a business
, OBJECTIVES OF FINANCIAL
STATEMENT ANALYSIS
1. To identify the weakness as well as the strengths of a business
2. To enable the business to take the appropriate steps or actions to overcome any weaknes
3. To enable the business to improve its overall financial situation in the future
