Ratios used to analyze financial statements of organizations

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Accounting fundamentals for Healthcare Management

Chapter 14, Ratio Analysis-How do we compare to other Healthcare organizations.

1. Why are ratios used to analyze the financial statements of organizations?

2. When common size ratios are prepare, each asset is compared to (...............) and every expenses compared to (.........)

3. How do common size ratios help compare organizations?

4. Why might too much liquidity be a problem for an organization?

5. Why might too "Little" liquidity be a problem for an organization?

Reference no: EM131039766

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