Why are ratios and trends used in financial analysis

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Question 1: Why are ratios and trends used in financial analysis?

Question 2: What do the terms liquidity and solvency mean?

Question 3: What is apparent from a horizontal presentation of financial statement information? A vertical presentation?

Question 4: What is the significance of inventory turnover, and how is it calculated?

Question 5: What is the difference between the current ratio and the quick ratio? What does each measure?

Question 6: Why are the absolute amounts of limited use when comparing companies?

Reference no: EM132456485

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