Calculating as well as understanding performance ratios

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Reference no: EM1397615

Bob Lawson is the leader of his company his CFO is Mark Ziegler. Like numerous entrepreneurs, Bob is more worried about the big picture and leaves the day-to-day accounting details up to Mark. Bob appraisals the financial statements regularly; but, Mark would like to help him understand how to make better use of the company's financial statements to gauge the changes in his business as well as plan for the future. Even though Mark generates all statements in terms of dollars as well as percent (common-size statements), Bob disregards the common-size statements. The two have decided to meet next week. Mark plans to instigate his coaching with the following topics: Making comparisons using standardized financial statements calculating as well as understanding performance ratios determining the company's profitability as well as growth Drawbacks associated with financial statement comparisons

Reference no: EM1397615

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