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7-4: Financial Ratio Finanacial ratio analysis is conducted by four types of analysis: managers, equity investors, long-term...

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Finance

7-4: Financial Ratio

Finanacial ratio analysis is conducted by four types ofanalysis: managers, equity investors, long-term creditors, andshort-term creditors. What is the primary emphasis of each of thesegroups in evaluating ratios?

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1 the managers are concerned with profitability ratios such as gross profit margin net profit margin and operating profit margin The managers performance in most cases is directly linked to the profitability of the business and hence they are    See Answer
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7-4: Financial RatioFinanacial ratio analysis is conducted by four types ofanalysis: managers, equity investors, long-term creditors, andshort-term creditors. What is the primary emphasis of each of thesegroups in evaluating ratios?

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