Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision. Through ratio analysis, users of financial data can analyze various relationships between items reported.
Respond to the following in a minimum of 275 words:
• Describe the 3 main categories of ratios
o and provide a specific example of a ratio that is used in each category.
• For each of the 3 ratios you selected, describe
o how it is used in managerial decision-making.
