Principles of Managerial Finance, 15th Edition

Chapter 3 Financial Statements and Ratio Analysis

Learning Goals

1. LG1 Review the contents of the stockholders’ report and the procedures for consolidating international financial statements.

2. LG2 Understand who uses financial ratios and how.

3. LG3 Use ratios to analyze a firm’s liquidity and activity.

4. LG4 Discuss the relationship between debt and financial leverage, as well as the ratios used to analyze a firm’s debt.

5. LG5 Use ratios to analyze a firm’s profitability and its market value.

6. LG6 Use a summary of financial ratios and the DuPont system of analysis to perform a complete ratio analysis.

MyLab Finance

Why this Chapter Matters to You ...