Financial Statements Analysis

Liquidity ratios, asset management ratios, profitability ratios and debt management ratios are crucial to evaluate how well the company performs. Liquidity ratio is conveying the ability to repay short-term creditors and its total cash. These liquidity ratios are current ratio, quick ratio and absolute ratio. Asset management ratio is also measure how to effectively a company to use and controls its assets. It's also quantified by inventory turnover ratio, working capital turnover Ratio and fixed assets turnover ratio evaluate long term solvency or leverage ratios convey a firm's ability to meet the interest costs and payment schedules of its long term obligations.

Autorentext

Tolossa Taddesse Jima, BA in accounting and post graduate in MBA in specialization of financial management, working experience about 11 year in financial sectors, about 7 years in agricultural sectors and accounting lecturer.