use of financial documents

Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.

• liquidity ratios
• efficiency ratios
• leverage ratios
• profitability ratios

The difference between current assets and current liabilities at a point in time. The amount of money that would be left over if all the current liabilities were paid off by current assets. 

• current ratio
• working capital
• acid test/ quick ratio
• asset turnover ratio

The comparison of a firm's current assets to current liabilities. The ratio indicates the amount of current assets available to pay off $1 of current debt.

• acid test/ quick ratio
• asset turnover ratio
• current ratio
• inventory turnover

Indicates a firm's ability to quickly liquidate assets to pay off current debts.

• asset turnover ratio
• inventory turnover
• debt-to-assets ratio
• acid test/ quick ratio

The amount of profit generated by the firm in relation to the amount invested by the owners.

• return on investment
• ratio
• working capital
• inventory turnover

These people look at ratios to monitor business operations

• Ratio

• Managers

• Profit

• Competitive Analysis

An element of the income statement that informs the business of just how much money it is making

• Net income

• Creditors

• Revenue

• Income Statement

Another name for the income statement because it is used to make a variety of business decisions

• Operating Statement

• Profit and Loss Statement

• Sales Growth Ratio

• Revenue

Any money made from the sale of the business’s goods and services

• Creditors

• Categories

• Managers

• Revenue

Total profit made before all remaining expenses have been deducted

• Financial Ratios

• Gross Profit

• Net income

• Operating Statement