Ratio Analysis/Applying Ratios to a Business
Using the Ashford University Library as a resource, find two articles that discuss financial ratio analysis. Identify two advantages and two disadvantages to using ratios in financial analysis. Be sure to cite your sources using APA format.
2.Applying Ratios to a Business
Review the following Evaluating Business Performance: Small Business Case Studies video:
Sykes, A. (Producer & Director). (2006). Evaluating business performance: Small business case studies [Video File]. Retrieved from the Films On Demand database.
The video focuses on profitability, liquidity, efficiency, and stability of business. Given what you have learned about ratio analysis, choose one of the businesses from the video (Rose Chong Costumes, Anro’s Floor Maintenance, or John Osborne’s Gym and Squash Center) and identify two ratios that would be helpful for the owner of the business to monitor. Be sure to explain what the ratio would tell the owner, and how it can be improved for the business.
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