Analyzing firms financial position is essential

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Analyzing a firm’s financial position is essential for those in charge to make their plans as you have mentioned. They are also used by investors to learn whether the business is operating in a healthy manner or not and can hence make decisions on their investments You have, however, not mentioned the financial the ratios that a firm would need to use and how they would need to use them. It is not clear how the ratios can work to the advantage of the firm or against the firm. You have also not derived how these ratios can be used by different stakeholders to evaluate the business fairly and hence make sound decisions concerning the firm.

Reference no: EM13849923

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