TASK: Insert the appropriate word in the text below:
properly
set
analyze
examined
sound
denchmark
judge
purposes
efficiently
Investors and creditors analyze this of statements to base their financial decisions on. They also look at extra financial reports like financial statement notes and the management discussion.
The income statement and balance sheet accounts are compared with each other to see how a company is using its assets to generate profits. Company debt and equity levels can also be… to determine whether companies are funding operations and expansions.
Most investors and creditors use financial ratios to these comparisons. There is almost no limit to the amount of ratios that can be combined for analysis
These ratios by themselves rarely give outside users and decision makers enough information to … whether or not a company is fiscally , however. Investors and creditors generally compare different companies' ratios to develop an industry standard or to judge company performance.