Key users of financial statements

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The four key users of financial statements are owners/managers, lenders, investors and governments. These users rely on financial statements to evaluate a company's past financial performance as indicators in areas of profitability, liquidity, leverage, and efficiency; to create benchmarking matrixes; and to support future decision-making.

Choose two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them.

  • What did your analysis tell you about these companies?
  • What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer,etc.?

Reference no: EM132441035

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