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Topic: Business
Number of pages / Number of words: 3 / 809
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Ratios are also good for measuring a company's ability to pay off short term debt as it comes due. Ratios do not normally tell much of a story in a signal snap-shot. The story is told when ratios are used in conjunction with trend analysis over a period of several years. With this kind of information interested parties can get a better picture of how the company is doing and where it stands in its performance and profit margins (Block & Hirt, 2005, 11)...


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Ratios are also good for measuring a company's ability to pay off short term debt as it comes due. Ratios do not normally tell much of a story in a signal snap-shot. The story is told when ratios are used in conjunction with trend analysis over a period of several years. With this kind of information interested parties can get a better picture of how the company is doing and where it stands in its performance and profit margins (Block & Hirt, 2005, 11)...


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