Forecasted Financial Statements And Trend Analysis

Forecasted Financial Statements And Trend Analysis

Primary Task Response:  

Watch the following video in preparation for the discussion:

• The Three Most Important Profitability Ratios

This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. Focus your discussion on the following questions:

• Which category of financial ratios do you feel is the most important and why? (Liquidity ratios, profitability ratios, financial leverage ratios, or debt ratios)
• Give an example for how financial ratios might be used to make a business decision.